Nobody knows what it'll do for the price...

If it's just the US government trying to clamp down on crypto users again and again by doing stuff like this, i doubt it'll be good for the price tough.

Giving self reporting of our wallet transactions to government will be the worst attack ever on the primary purpose of Bitcoin,  because if such policy mistakenly happens to be executed, then the anonymousity of Bitcoin is dead already, but I strongly doubt such can  ever be possible, because Bitcoin is a worldwide currency and not just for citizens of US alone, because had it been Bitcoin was only for US citizen then that would have been the most tragic news ever.

It would suck, but I don't think the negative price impact would be that big. A lot of people who acquired their bitcoin privately would just be secretly holding their BTC safely using their non-custodial wallet.

With that said, we need better privacy tools that are easy for beginners. Probably a privacy-by-default wallet.

tl;dr:
if people avoid using exchanges(which other people use as a price indicator). then that can affect the price due to how many sellers/buyers are trading.
and if their main reason for not using exchanges(price indicators) is idiots scaring them to avoid exchanges. due to some idiot theory of some silly fantasy requirement to inventory list all assets by ID/ref(something IRS dont ask) then yes the silly drama fud can cause a price change.

yet. this silly conspiracy theory of government overwatch all trades, has been debunked

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based on the content of the topic message..

im not from the US. but looking at the form 1040(main page)
no where does it ask to list every share holding, every stock option, every asset you own

and the top question of the form is about your marital status
attachment 1 (schedule1) does not ask to list stocks/shares/assets by name reference number or id
neither do any of the other attachments

they only ask for AMOUNT totals of any gains/losses incurred.

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OELEO makes things up to scare people into thinking bitcoin is not fit for purpose by saying people shouldnt use bitcoin due to whatever silly reason he implies, to then advertise some other service/network he prefers
(because those services/networks only work if more people use it and at the moment those services dont have much adoption, so he is stuck with limited use himself over on those services)

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as with all assets and investments in most countries. you only declare any profit/gains. you dont need to inventory list every item of value you have

if you dont sell, you dont gain/lose
.
for years anytime anyone cashed out back to fiat, they are suppose to total up the fiat income/gains they incurred that year.

so no change..until they sell for profit

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as for other forms (not mentioned in topics message)
there are SAR and CTR forms that exchanges and financials services INCLUDING YOUR OWN BANK report behind the scenes on their customers. which everyone already should be aware of for many years that central exchanges will report.

alot of people avoid central exchanges, thinking they can escape the CTR reporting by exchanges.. which means that people looking for a price based on exchanges. if there are a lack of exchange customers. means that the price can vary.
EG if there are less buyers on an exchange. and too many sellers. then that can affect the price.

yep the same people saying bitcoin is not fit for purpose and trying to advertise some other middleman service or some other network.. are the same people that are telling people not to use exchanges..

i personally think people should not use exchanges as a custodial wallet for long time store, but to just exchange fiat for bitcoin. it doesnt matter if you use a CEX or a DEX. because your BANK (wire transfer when cashing in-out) will still send their own CTR to the IRS.
thus you cant hide it when doing any wire transfers in and out. no matter if its CEX or DEX.
infact using DEX of funnelling wire transfers in and out of random people, becomes more suspicious to your bank(localbitcoin.com users found this out ages ago which is why people stopped using it in the end as it become no different than using anything else.. those doing alot of trade were being spotted by banks as a unregistered msb.. which some using DEC are now experiencing the same)

the only way to truly hide any income, is to do suitcase of paper cash trades for bitcoin.. true over the counteroff market trades. which dont contribute to the main exchange volume, price changes

seems you have amnesia
we have already been through this
governments are not watching every transaction
they dont have the resources/labour/time/money to watch everything. never have never wil
tone your paranoia down a bit.

they ask financial services to watch out for certain things, and for those services to do their own investigations to then report only the very suspicious/highly interesting events.

put it this way. (math doesnt lie)
there are 1.7k tx for bitcoin per block. = 89,352,000tx a year
yet there are not ~90m SAR CTR reports a year (yep google search can show you the SAR CTR report stats)
(and thats just counting bitcoin let alone all the other altcoins and fiat deposit/withdrawals)

IRS forms do not ask you to list every share certificate number, stock ID or crypto address

i am starting to think your over conspiracy/paranoia and lack of actual research is based more on some drug induced creative thinking. which might explain what your are trying to hide away from them finding out what you buy. (logic/common sense)

i got nothing against anyone having their own recreational use of drugs, but in your case,, calm it down a bit, i think your taking a bit too much.

..
things you need to actually know and research

bitcoin 2009-2014 was not defined as a currency in regards to legislation. so the need to declare it was comparable to the need to declare pokemon cards/beanie babies, jewellery..
but since bitcoin was lobbied and pushed to being recognised as a currency.. THEN currency rules applied.

yep with all rights also comes responsibilities.
its the downside of mainstreaming as a currency.. that currency rules apply

but these rules are the same as the ones that other currencies follow.
people are used to the currency rules, but thought that they dont apply to bitcoin.

its not a case of having a IRS form asking to specify every address you own. its about ticking a box that you have received some VA or dividend or IRA or annuity or.. list goes on..
simply adding on a new income method is about bringing crypto into the same requests as the other stuff. where you just then need to fill in the AMOUNT not the ID

so calm down on the drug induced conspiracy and tone it down to reality.
yes even i preferred crypto before 2014 when it was just treated as a good/product/asset.
but you have to accept the reality that bitcoin has entered the realms of currency. which comes with currency implications, especially at the gateways of government fiat exchange in regards to taxes when its time to exit to fiat