The non-profit crypto advocacy group Coin Center has cautioned that while a Trump victory might benefit the crypto industry overall, existing policies could still drive crypto innovators out of the United States. In a blog post, Coin Center’s research director, Van Valkenburgh, highlighted three major challenges facing crypto users and developers in the US as we move into 2025.
These challenges, broadly categorized as “surveillance issues,” include stricter tax reporting requirements, tougher anti-money laundering (AML) policies, and the legal battles surrounding crypto tools like Tornado Cash and Samourai Wallet.
The first major concern stems from the crypto reporting rules under Section 6050I of the U.S. tax code. These rules require anyone receiving $10,000 or more in crypto to report it directly to the IRS without a warrant. Coin Center challenged these rules in August last year, claiming they violate the Constitution.
Furthermore, the second and third major threats arise from the sanctions imposed on Tornado Cash. These include criminal charges against the mixing service and Samourai Wallet for operating as unlicensed money transmitters.
Coin Center warns of regulatory shifts for crypto
Coin Center warns that the charges against Tornado Cash founder Roman Storm could create a troubling precedent for developers working on non-custodial crypto services.
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 and his likely choices for appointees at the SEC and Treasury.
Valkenburgh noted that the new administration might not prioritize easing strict sanctions and anti-money laundering (AML) policies. He added that while the Department of Justice could see some changes under a Trump administration, it values its political independence and is unlikely to halt ongoing prosecutions simply due to a shift in leadership.
Additionally, he said that the current efforts to block access to crypto services do “very little to actually stop criminals and terrorists” from using these tools.
