By Nick Spanos, Libertarian, Former Senior Advisor to Ron Paul, and Founder of the First Live Cryptocurrency Exchange 2013
Introduction
The Infrastructure Investment and Jobs Act (IIJA), signed into law in November 2021, might look like an ordinary government effort to fix bridges and roads, but lurking within its pages is something far more sinister. Buried in this massive bill are sweeping new cryptocurrency reporting requirements—rules that threaten the very foundation of innovation, freedom, and financial sovereignty.
As someone who has dedicated my life to championing liberty—first on the campaign trail for Ron Paul and later by founding the world’s first live cryptocurrency exchange near the New York Stock Exchange—I see these regulations as an existential threat to the decentralization and freedom that cryptocurrencies represent. This is not just about taxes or compliance; it’s about control. And we must act now.
The Infrastructure Bill’s Hidden Attack on Cryptocurrency
The Infrastructure Bill is a Trojan horse. It promises infrastructure improvements but sneaks in authoritarian measures to clamp down on the cryptocurrency industry. Provisions buried in the bill redefine “broker” to include anyone remotely involved in crypto transactions—developers, miners, validators, and even wallet providers. This broad and vague language creates a compliance nightmare.
What’s worse? These provisions were slipped in to fund the government’s insatiable appetite for tax revenue. Proponents claim this will raise billions over the next decade. But at what cost? Innovation will be stifled, entrepreneurs will be crushed under bureaucratic red tape, and the U.S. will lose its position as a global leader in the digital economy.
A Libertarian Perspective: Why This Matters
Cryptocurrency embodies the principles of freedom and decentralization that we libertarians hold dear. It allows people to transact without middlemen, free from government overreach. Regulations like those in the IIJA are a direct attack on this freedom.
This is about more than cryptocurrency—it’s about individual sovereignty. When the government forces developers and miners to collect and report user data, it’s not just overregulation; it’s surveillance. And surveillance is the first step toward tyranny.
This bill sets a dangerous precedent, expanding the government’s control over what should be a free and open market. It’s the kind of big-government overreach that Ron Paul warned us about for years. It’s time to take a stand.
The Threat to Innovation and Economic Freedom
Crushing Startups and Small Players
The compliance burdens in this bill aren’t just inconvenient—they’re insurmountable for most startups and small players. These regulations are designed for massive financial institutions with armies of lawyers and accountants, not for the scrappy entrepreneurs who built the crypto revolution.
Driving Talent Overseas
As the U.S. doubles down on its hostility toward cryptocurrency, innovators are packing their bags and heading to friendlier jurisdictions. Countries like United Arab Emirates, Singapore and Switzerland are welcoming crypto entrepreneurs with open arms, while the U.S. is pushing them out with draconian rules. This brain drain is an economic disaster waiting to happen.
Undermining Decentralization
The heart of cryptocurrency is decentralization—the idea that no one entity, especially not a government, should control the system. These regulations force crypto participants into centralized reporting structures, undermining the very principles that make blockchain technology revolutionary.
A Unique Opportunity for Political Leadership
In the face of this overreach, we’re seeing a coalition of influential voices—Elon Musk, Vivek Ramaswamy, and even Donald Trump—aligning to push back.
- Elon Musk, a champion of innovation, has called for less regulation and more freedom to experiment.
- Vivek Ramaswamy has pledged to dismantle these oppressive regulations, recognizing the need to protect the digital frontier.
- Donald Trump, who once viewed crypto skeptically, has shifted toward supporting its potential to empower individuals and bolster economic freedom.
These voices represent a chance to reverse course. But we can’t just wait for politicians to save us. The crypto community must unite and demand action.
What We Must Do to Protect Cryptocurrency Freedom
The path forward requires a multi-pronged strategy:
1. Legislative Action
We need allies in Congress willing to fight for liberty. Organizations like the Congressional Blockchain Caucus are already working to narrow the scope of these regulations. But they can’t do it alone. Constituents must demand that their representatives support pro-crypto amendments.
2. Industry Coalitions
The cryptocurrency industry must come together to form a powerful lobbying force. By pooling resources, we can amplify our voice and ensure the government hears our concerns loud and clear.
3. Public Awareness Campaigns
We need to educate the public about what’s really happening here. This isn’t about closing tax loopholes—it’s about controlling your financial freedom. If we can show people how these regulations impact their wallets and their rights, we can build a groundswell of opposition.
4. Building Alternative Systems
If the government insists on attacking crypto, we must be ready to innovate around it. Decentralized technologies are resilient by design, and we can build tools to resist censorship and overreach.
What Happens If We Do Nothing?
If these regulations are allowed to stand, the consequences will be devastating. The U.S. will fall behind as other nations embrace cryptocurrency innovation. Entrepreneurs will leave, jobs will vanish, and the promise of financial sovereignty will be reduced to a pipe dream. Worse, it will embolden the government to enact even more invasive policies.
The IIJA is a test. If the crypto community allows these regulations to go unchallenged, it sends a signal that we’re willing to accept government overreach. We cannot let that happen.
A Libertarian Vision for Cryptocurrency
Cryptocurrency is about more than making money—it’s about creating a world where individuals are free to transact without interference. That’s the libertarian dream, and it’s worth fighting for. The U.S. has a chance to lead the world in innovation and freedom, but only if we stand up to tyranny disguised as regulation.
Let’s make our voices heard. Let’s tell Washington that we will not let them crush the future of financial freedom.
FAQs
- Why are cryptocurrency regulations in an infrastructure bill?
They were included to generate tax revenue, but their vague language and broad scope have far-reaching implications for the crypto industry. - How does this affect everyday cryptocurrency users?
These rules increase surveillance and reporting requirements, potentially discouraging participation in the cryptocurrency ecosystem. - What’s the libertarian perspective on crypto regulations?
Libertarians see these regulations as an attack on financial sovereignty and decentralization, key principles of the crypto revolution. - What can we do to fight these regulations?
Support legislative efforts, form industry coalitions, raise public awareness, and innovate decentralized solutions to resist overreach. - What happens if we lose this fight?
The U.S. risks falling behind in innovation, losing talent to crypto-friendly nations, and forfeiting its role as a leader in financial freedom.