Crypto Faces Ongoing Challenges Despite Pro-Crypto Shift in U.S. Leadership

Coin Center, a prominent crypto advocacy organization, has raised concerns about potential barriers to innovation in the U.S. crypto sector, even as expectations grow for a more crypto-friendly environment under a possible Trump administration.

The group’s research director, Van Valkenburgh, identified three key issues that could hinder progress for both investors and developers: excessive IRS reporting requirements, sanctions on crypto services like Tornado Cash and Samourai Wallet, and overbearing anti-money laundering (AML) policies.

The group criticizes the U.S. tax code’s requirement to report crypto transactions over $10,000 to the IRS, calling it unconstitutional and a needless surveillance measure.

Coin Center also warns that the sanctions placed on Tornado Cash and Samourai Wallet, along with criminal charges for alleged illegal money transmission, could discourage developers from working on non-custodial crypto services. While the incoming administration’s pro-crypto stance might lead to policy adjustments, Valkenburgh remains cautious.

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He points out that the Department of Justice, despite any changes under Trump, could continue enforcing these regulations, as it values its political independence. Despite these challenges, Coin Center remains hopeful for gradual progress in the crypto market, even if all restrictions are not fully lifted.

Kosta Gushterov