With Trump’s election, there seems to be a renewed optimism amongst Bitcoin enthusiasts and businesses about the future of Bitcoin in the United States. This sentiment is evidently reflected in the climbing price of Bitcoin which is consistently hitting new record highs post-election.
It’s indeed a thrilling time for US Bitcoiners as they breathe a sigh of relief with the Bitcoin price surge. However, it’s equally crucial to acknowledge that if we let our guard down and compromise on our ability to carry out transactions with Bitcoin privately and anonymously – a possibility that some are rightly warning about – then we would be failing in our mission.
Former presidential advisor Pippa Malmgren on the legalization of Bitcoin:
“If you legalize crypto and Bitcoin […] they can’t be held anonymously, they must be declared.”
“Escaping the reach of the US Government will not be possible. […] And since we are in… pic.twitter.com/aVeZBKodQ4
— L0la L33tz (@L0laL33tz) November 8, 2024
Although it appears that the Trump administration will be more lenient towards the Bitcoin and wider crypto industry than the Biden administration, we are still uncertain about the specifics of the regulatory framework under the new administration. Moreover, the recent statement by the judge in the Tornado Cash case suggests that the Bank Secrecy Act (BSA) does not necessitate control of funds (private keys) for money transmission. This could potentially set a legal precedent leading to stricter AML/KYC requirements for Bitcoin users.
Key takeaways from the @TornadoCash decision so far:
(1) BSA doesn’t necessitate control for money transmission
(2) 2019 guidelines don’t impose a broad control requirement for money transmission, “total independent control” is just one aspect of a four-factor test specific to the… https://t.co/1rnB2SCVpA— Zack Shapiro (@zackbshapiro) September 26, 2024
If we fail to back legal efforts that defend our right to transact on a peer-to-peer basis without giving out personal information, then we risk losing one of the fundamental values of Bitcoin.
So, while we should certainly rejoice in the incoming administration’s support for things like Bitcoin mining in the US and the right to hold your private keys, it’s essential to stay alert to what the administration and the courts say about the need to provide personal information to use Bitcoin – and be prepared to resist.
This article is an Opinion piece. The views expressed are entirely those of the author and do not necessarily represent the views of BTC Inc or Bitcoin Magazine.
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