In any organization, there is a reason to believe that the current debatable rulemaking will be scrapped because of the pro-crypto stance of current President Trump- Valkenburgh
Coin Center argues that the charges brought against the founder of Tornado Cash, Roman Storm could lead to a concerned example for developers working over non-custodial crypto services.
Valkenburgh didn’t forget to mention that the existing measures to safeguard people from having crypto services do not do that much to really safeguard criminals and terrorists from using the same.
Coin Center, a non-profit research and advocacy center has alerted the crypto community that even though the outstanding win of Trump has brought a positive result for the crypto industry, some deep-rooted laws could still terrify crypto pioneers.
Van Valkenburgh, the research director at Coin Center took to a social media platform, X in which he analyzed the outlook of US crypto policy after the US election and mentioned three serious threats to the crypto users as well as developers from the United States.
All the mentioned threats are referred to as “surveillance issues” and start from tax reporting and anti-money laundering laws and go to the existing criminal activities. These criminal activities mainly consists the crypto mixer Tornado Cash along with the Bitcoin wallet service Samourai Wallet.
What are those three threats?
The first threat is said to be the crypto reporting requirements which come under Section 6050l of the US tax code. As per the requirements, it directs warrantless reporting to the IRS for ones gaining $10,000 or more than that in crypto. In August 2023, the Coin Center asserted that the mentioned reporting requirements are unlawful.
The remaining threats refer to the sanctions imposed over Tornado Cash which consists of criminal charges for unauthorized money transfers brought against the mixing service as well as Samourai Wallet.
Coin Center argues that the charges brought against the founder of Tornado Cash, Roman Storm could lead to a concerned example for developers working over non-custodial crypto services.
It further went on to add that in any organization there is a reason to believe that the current debatable rulemaking will be scrapped because of the pro-crypto stance of current President Trump and his expected choices for delegates at the Securities and Exchange Commission and Treasury.
The “overzealous” sanctions
Having said that, Valkenburg mentioned in the November 21 blog post that, the new government may not intend to reduce the “overzealous” sanctions and anti-money laundering policies. He further added that the Department of Justice will not be the same under Trump’s government but it truly protects its political independence. And, this may be a reason that the administration will not likely waive these prosecutions.
Also, we are still optimistic that there can be a change here if it becomes extensively clear that even with a cordial SEC, strict surveillance, as well as control policies, will carry on driving innovators away from the United States, and not accept average Americans the profits of these technologies.
Valkenburgh didn’t forget to mention that the existing measures to safeguard people from having crypto services do not do that much to really safeguard criminals and terrorists from using the same.