Coin Center Warns US Regulatory Policies Could Drive Crypto Investors Away Even If Trump Wins

The non-profit advocacy group Coin Center has issued a warning that while Donald Trump's victory may bring significant benefits to the crypto industry, current policies still pose a risk of pushing innovators in this field out of the United States. In a blog post on November 21, analyzing the U.S. crypto policy landscape after the 2024 election, Coin Center's Director of Research, Van Valkenburgh, highlighted three "serious threats" to crypto users and developers in the country in 2025. These threats, categorized by Coin Center as issues related to "surveillance," include: - Tax reporting requirements: Under Section 6050I of the U.S. Tax Code, anyone receiving more than $10,000 in cryptocurrency must report detailed information to the IRS without a court order. Coin Center argues this provision is unconstitutional and filed an objection last August. - Sanctions against Tornado Cash: This relates to criminal allegations of providing unlicensed money transmission services for Tornado Cash, a crypto mixing tool, and Samourai Wallet, a Bitcoin wallet service. - Legal precedent for developers: Coin Center is concerned that the charges against Tornado Cash founder Roman Storm could set a worrying precedent, threatening developers who provide non-custodial crypto services in the future. Coin Center expresses hope that under the Donald Trump administration, which is crypto-friendly, the current controversial regulations could be suspended or repealed. This is expected to happen through the appointment of crypto-friendly personnel in agencies like the U.S. Securities and Exchange Commission (SEC) and the Treasury Department. However, Valkenburgh notes that reducing "excessive" anti-money laundering (AML) and sanctions policies may not be a top priority for the new administration. He believes the U.S. Department of Justice (DOJ), with a stance of political independence, is unlikely to abandon current lawsuits simply due to a change in leadership. "We're cautiously optimistic that there may be changes in the regulatory environment, and we see some hope for reform. While the SEC may become more crypto-friendly, the broader regulatory environment (which may involve surveillance policies, data security, or financial regulations) could still dampen innovation and entrepreneurship, causing companies to seek opportunities elsewhere. Overregulation could slow technological progress and prevent the public from benefiting from new advancements." He also criticizes the current restrictions on access to crypto services, arguing that they "do not actually prevent criminals and terrorists" from using these tools.