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It depends how stiff the regulations are. If they're too expensive and difficult to comply with or too overreaching, innovators and businesses will just leave the country, as Matt Corallo rightly points out
here:
Square Crypto developer Matt Corallo said this approach will harm the industry if the Biden administration makes good on the Trump administration’s isolationist penalties and proposals.
“It is absolutely clear [Treasury Secretary Steven] Mnuchin wants this done before Biden takes over, though what’s less clear is whether Biden’s treasury under [incoming Treasury Secretary Janet] Yellen will be more cryptocurrency-friendly,” Corallo said. “The BitGo penalty is likely to make building user-friendly cryptocurrency wallets impossible in the United States. Instead, innovation will happen elsewhere and American competitiveness in the emerging industry will take a huge hit.”
So this is just an indication that the upcoming government is really not here to make some changes that would harm the crypto industry. I know new rules might be imposed but this is just something that we need to accept because like I said the crypto industry have turn heads again and with this much attention you would expect that the government will be involve in several kinds of ways. For me I think the biggest concern for crypto-users will be mostly in adjustment just like what they are experiencing everytime they file their income report with the IRS related to cryptocurrencies.
~snip
Hester Pierce is definitely not running the show.
I'm also concerned about a much larger crackdown than
just from the SEC -- the CFTC, the Treasury Department, FinCEN, the Consumer Financial Protection Bureau, etc. I'm getting the feeling that lots of agencies are gearing up for a busy year.
From what I have seen crackdowns that is implemented by the government is either through KYC and AML procedures most of their tracking is with the assistance of chainalysis which have shown that even government agencies like FBI and DEA have been funding them and aside from that they always have the power to trace someone through crypto-related businesses like what they did with Coinbase during the Twitter hacking. We can see a bunch of this if crypto will be used more.