Coin Center, a nonprofit cryptocurrency advocacy group, warned that while President Trump's victory is a real positive for the crypto industry, his still-entrenched policies could scare crypto innovators away from the United States.
Blog on November 21st post Coin Center Research Director Van Valkenburg analyzes the state of US crypto policy after the 2024 election and identifies three “significant threats to US crypto users and developers heading into 2025.” ” was shared.
sauce: coin center
All three threats are broadly described as “surveillance issues,” ranging from tax reporting and anti-money laundering (AML) policies to crypto mixer Tornado Cash and Bitcoin wallet service Samurai Wallet. This extends to ongoing criminal proceedings.
Three “major” threats to cryptocurrencies
The first major threat arises from virtual currency reporting requirements under Section 6050I of the U.S. Tax Code. Currently, anyone who receives $10,000 in virtual currency is required to report it to the IRS without a warrant.
Last August, Coin Center argued that such reporting requirements were unconstitutional.
The second and third major threats stem from sanctions against Tornado Cash, which include criminal charges against the mixing service and Samourai Wallet for unauthorized transfers.
Coin Center says the accusations against Tornado Cash founder Roman Storm could set a worrying precedent for developers of non-custodial crypto services.
“At the regulatory level, President Trump’s general pro-crypto stance and the likely selection of SEC and Treasury nominees have resulted in the freezing or abandonment of ongoing controversial rulemaking. There is reason to believe that it will.”
Related: CFTC Commissioner calls for U.S. cryptocurrency policy reform
However, Falkenburgh wrote that the new administration may not be interested in “excessive” sanctions or rolling back AML policies.
” [Department of Justice] “Although that may change under the Trump administration, political independence is duly protected and therefore it may be unlikely that these prosecutions will be waived due to a change in administration,” Falkenberg said. Ta.
“Nevertheless, it is becoming increasingly clear that even as the SEC becomes friendlier, strict oversight and control policies will continue to drive innovators away from the United States, slow development, and deny ordinary Americans their benefits.” “We expect to see progress here.” ”
Falkenberg added that the measures currently in place to prevent people from accessing cryptocurrency services “do little to actually prevent the tools from being used by criminals and terrorists.”
magazine: It will take 4 years for cryptocurrencies to grow this big: “No one can stop them” — Kain Warwick, Infinex
