Assuming this doesn't mean agencies like the FBI and whatnot, and only means the IRS, isn't it usually a crime to hide assets? I have not read the legislation referenced in the link bit might do so later. This is not the same thing as having to report crypto ownership to the government, right? That would have a grave impact on bitcoin, I'm afraid. And it goes against the spirit of what bitcoin stands for, and the mindset of many bitcoiners, including me.
I've read over the bill and I also reached out to an attorney friend for his opinion. The "hiding of cryptocurrency ownership" seems to be a misnomer. There's nothing requiring citizens to declare their control of e.g. Bitcoin private keys. And if there were, it would be unenforceable. Logically, it would be hard to justify such a requirement for cryptocurrency but not for any other commodities, securities, or cash.
The clause in question refers to "ownership or control of an account or assets held in an account with a financial institution." Further, its worded such that the issue at hand seems to be concealing/misrepresenting the ownership of financial accounts. This would cover the multitude of people that presumably trade on exchanges using fake names/personal details.
The main problem with the bill is the expansion of the definition of "financial institution." It seems like any redeemer (broker?) of digital currency, exchange or tumbler would now be classified as a financial institution. It looks to me like they are trying to target fiat gateways, brokers and mixers -- "financial institutions" under the proposed bill. And they want to make it unlawful for anyone to then conceal their identity from these financial institutions, who regulators can then shake down anytime they want.