US agency regulation of cryptos will tighten

Significance

This has reenergised the fractious US debate on crypto legislation and regulation. Meanwhile, cryptocurrencies are emerging from their most recent ‘winter’, with the price of Bitcoin up 170% over the past year.

Impacts

• US tax authorities will step up their pursuit of crypto-related tax evasion by individual taxpayers.
• Even Republicans who favour cryptos will dig in at federal and state level to oppose a retail digital dollar.
• A Republican administration following the 2024 elections would likely weaken the SEC relative to the CFTC.