A prominent nonprofit crypto advocacy group lists the biggest current threats to the digital asset industry.
In a new report analyzing crypto legislation following the 2024 US presidential election, Coin Center says the three biggest threats to the industry are the Internal Revenue Service’s (IRS) mandate to report crypto transactions larger than $10,000 (6050I), the sanctions imposed on crypto mixers. Tornado Cash and prosecutions again for money transfers without a permit.
Coin Center says all of the threats mentioned may not be addressed by the next presidential administration.
“First, we already have ongoing litigation in the 6050I context; we argue that warrantless mandatory reports to the IRS containing personal information of those receiving $10,000 or more in crypto are unconstitutional.
Second, we also have ongoing litigation in the context of Tornado Cash sanctions; we argue that sanctions laws do not give the Treasury Department the power to ban Americans from using tools, such as immutable smart contracts, that are neither foreign persons nor owned by them.
Third, we have watched with dismay as the Southern District of New York prosecuted the developers of software tools (Tornado Cash and Samurai Wallet) for transferring funds without authorization, and we will continue to assist the defendants in those cases to the best of our ability . as we can.”
According to Coin Center, the idea that Donald Trump’s administration will be good for the centralized crypto industry is credible.
However, the company is unsure whether the Trump administration will consider rolling back frivolous regulations targeting the decentralized crypto sector, a move they expect Congress to consider.
“Less certain is whether the new administration will be interested in rolling back overzealous sanctions and AML (anti-money laundering) policies…
Nevertheless, we are hopeful that progress can be made in this area as it becomes increasingly clear that even with a friendlier SEC (US Securities and Exchange Commission), draconian supervisory and control policies will continue to drive innovators away from the US, slowing down development and will continue to hinder development. ordinary Americans the benefits of these technologies…
We are also optimistic that Congress is ready to take on a greater role in reducing these surveillance issues.”
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