Crypto advocacy group Coin Center shared a cautiously optimistic outlook on the future of US crypto regulation following the recent elections.
While it expects progress in securities and banking regulation, it warns of enduring threats in the surveillance and tax-reporting domains.
In his analysis, research director Peter Van Valkenburg foresees clearer rules governing centralised markets and stablecoin issuers under a potentially more crypto-friendly administration.
“At the agency level, there’s reason to believe that controversial ongoing rulemakings will be frozen or even abandoned due to President Trump’s generally pro-crypto stance,” he states.
However, the group remains concerned about aggressive regulations targeting decentralised tools and privacy-focused technologies.
Privacy and Surveillance
Van Valkenburg notes challenges tied to IRS reporting requirements, sanctions on tools like Tornado Cash, and unlicensed money transmission prosecutions.
The IRS’s 6050I reporting requirements mandate disclosures for transactions exceeding $10,000, including the personal information of recipients.
Coin Center argues these rules amount to warrantless surveillance and is currently challenging their constitutionality in court.
The group has also been one of the most outspoken against sanctions on crypto-mixing tools like Tornado Cash. Coin Center contends that sanctions laws should not extend to immutable smart contracts.
Finally, Van Valkenburgh points to unlicensed money transmission prosecutions, such as those involving Tornado Cash and Samurai Wallet developers, as a troubling precedent.
These cases, pursued by the Department of Justice, blur the line between software creation and financial services.
Despite these challenges, Coin Center remains cautiously optimistic about the opportunities for progress under a new administration and a more engaged Congress.