While Donald Trump’s presidency is expected to bring a favorable outlook for the cryptocurrency industry, certain entrenched U.S. policies could still deter crypto investors and developers, according to a warning from a leading advocacy group.
Ongoing Risks for the Crypto Industry
In a November 21 blog post, the non-profit group outlined several “serious threats” that could harm the crypto ecosystem in the U.S., despite the potential benefits of a pro-crypto administration.
These threats, which the group describes as “surveillance issues,” include:
- Tax Reporting Requirements: The controversial Section 6050I of the U.S. tax code mandates automatic reporting of crypto transactions over $10,000 to the IRS without a warrant. The advocacy group has argued this policy is unconstitutional and violates privacy.
- Sanctions and Legal Precedents: Sanctions on Tornado Cash and criminal charges against its developer, Roman Storm, as well as Bitcoin wallet service Samourai Wallet, raise concerns about the future of non-custodial crypto services.
- Anti-Money Laundering (AML) Policies: Stringent AML policies could further complicate the operating environment for crypto businesses and developers.
Potential Relief Under Trump Administration
The group expressed cautious optimism, noting that controversial rulemaking efforts at agencies like the SEC and the Treasury Department might be paused or reversed under a Trump administration. His pro-crypto stance and potential appointments at key regulatory bodies could create a more favorable environment for the industry.
However, the advocacy group emphasized the need for vigilance, as unresolved policy issues could continue to create barriers for innovation and growth in the U.S.
Summary Review: Despite Donald Trump’s expected support for cryptocurrency, entrenched U.S. policies—such as intrusive tax reporting and sanctions on privacy tools—pose significant risks to the crypto sector. While a more favorable regulatory landscape could emerge under Trump’s leadership, advocacy groups warn that unresolved issues might still drive investors and developers away.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
