Before US cryptocurrency laws are finalized and implemented, cryptocurrency prices will likely be highly volatile. Uncertainty about the laws' exact provisions creates a mixed market sentiment. If rumors suggest stricter regulations, prices may drop as investors become risk - averse. Conversely, if indications are of more lenient rules, prices may rise. For example, news of potential tax incentives for cryptocurrency investments can boost prices, while talk of comprehensive bans can lead to sharp declines. This back - and - forth will keep the market in a state of flux.