Investors avoid voluntarily disclosing their investments because of the possibility of being taxed. If the tax were low and the registration requirements were less stringent, we would see more investors disclosing their net investments in cryptocurrencies. Also, the decentralized nature and high transparency that characterize cryptocurrencies would be easier to regulate if there was. Wider cooperation, especially since Bitcoin and most cryptocurrencies do not describe themselves as private cpins.
I am sure that in a few years cryptocurrency transactions in CEX will be automatically transferred to state treasuries and will appear in the draft of the income tax return. Although there will always be DEX and other ways to escape this.In my country this is already the case, although the user still needs to report it themselves, they don't have to calculate their tax manually since exchanges will do it for them. I can say that there is no major pushback against it since the fee is quite low. I doubt my government's stance will change anytime soon, but I can see them increasing the tax ratio instead of focusing on forcing people to disclose their holdings. I don't think Gensler's worry applies in my local market, even if it did he probably should focus on providing a clear regulation first before blindly forcing people to follow the law. CMIIW.
If adoption and government compliance continue, you will see cryptocurrencies in your bank account and there will be no need for CEXs as these platforms have many disadvantages and banks will soon find it is an ideal opportunity to implement compliance, pay taxes and benefit from fees.
I don't trust that the fees will be low, but I am sure that in a few years cryptocurrency transactions in CEX will be automatically transferred to state treasuries and will appear in the draft of the income tax return. Although there will always be DEX and other ways to escape this.