Stiglitz Warns Trump Crypto Deregulation May Turn US Into Global Tax Haven, Sparking Investor and Regulatory Concerns

Nobel laureate Joseph Stiglitz and leading US crypto policy figures have issued warnings regarding Donald Trump’s crypto deregulation proposals, cautioning that such actions could turn the United States into the world’s largest tax haven. During the Trump administration, measures such as suspending business ownership data collection, withdrawing from international tax cooperation, loosening cryptocurrency regulations, and reducing anti-money-laundering enforcement contributed to declining financial transparency. Investors have also criticized related tax proposals, concerned about their potential to expand and impact broader asset transfers. Recent developments—including the executive order to create a US strategic crypto reserve and the nomination of a crypto-friendly SEC chief—have intensified worries about a surge in untraceable crypto transactions and illicit financial activity. Stiglitz argues that deregulation could enable underregulated crypto exchanges, online casinos, and anonymous trading platforms, increasing risks of money laundering and tax evasion. While these moves may briefly benefit crypto traders seeking fewer restrictions, they threaten long-term financial stability and undermine confidence in the US financial system. Additional policies like IRS staffing cuts and corporate tax breaks may result in an estimated $2.4 trillion tax revenue shortfall over ten years. With over 50 nations advancing a 15% corporate tax minimum, Stiglitz suggests the US strategy may ultimately backfire. For crypto traders, the short-term upside from deregulation could be outweighed by long-term instability, stricter global tax enforcement, and reputational risk to both the US and the broader crypto industry.