Iran: The resignation of President Pezeshkian strengthens the control of the IRGC, a risk for local cryptos

Reformist Iranian President Masoud Pezeshkian announced his resignation on May 31, 2026, citing the growing dominance of the Islamic Revolutionary Guard Corps (IRGC) over government institutions. This decision comes amid heightened geopolitical tensions and strengthened international sanctions against Tehran. Iran, where cryptocurrencies are already subject to strict control, could see its crypto policy tighten further under IRGC influence, given the IRGC's known opposition to unregulated digital assets. The country recently seized 1 billion US dollars in cryptocurrencies linked to sanctioned entities, according to reports compiled by CryptoBriefing. These measures are part of a strategy of financial sovereignty, but they also increase opacity and systemic risk for local holders. The facts Masoud Pezeshkian justified his resignation by the IRGC's grip on institutions, which limits the room for maneuver of reformists. This announcement comes as Iran faces annual inflation of 40% and a persistent economic crisis. Iranian authorities have already banned the use of Tether (USDT) for local transactions, partially replacing these foreign stablecoins with local versions such as IRR Tether. The IRGC, already under US sanctions, is seen as a key player in managing the state's crypto reserves. No official data has been published on the immediate impact of this resignation on crypto assets held by Iran, but observers expect tighter restrictions. Why it matters Iran represents a unique case of state control over cryptocurrencies. The country uses digital assets as a tool to circumvent sanctions, while imposing strict restrictions to prevent capital flight. With Pezeshkian's resignation, the IRGC could accelerate the centralization of crypto reserves under its control, reducing the liquidity available to private actors. This strategy could limit the impact of sanctions on the Iranian economy, but it would also increase the risk of confiscation for local holders. Such an approach could serve as a model for other sanctioned regimes, such as Russia or Venezuela. Moreover, Iranian traders could turn to offshore markets, such as Turkey or the United Arab Emirates, to bypass local restrictions. Points to watch The appointment of a successor: the profile of the new president will determine the future direction of Iran's crypto policy. The adoption of local stablecoins: if Iran accelerates the rollout of its IRR Tether, this could set a precedent for other sanctioned countries. IRGC measures: greater centralization of crypto reserves could reduce liquidity and increase risks for holders. Reactions in offshore markets: a flight of capital to foreign platforms could weaken the effectiveness of local restrictions. The evolution of international sanctions: tougher measures could reinforce Iran's reliance on cryptocurrencies as a tool for circumvention. The current political uncertainty makes any prediction hazardous. Conflicts of interest between the IRGC and reformists could also lead to inconsistent measures regarding cryptocurrencies. Finally, the lack of official data on the Iranian state's crypto reserves limits the ability to assess the real impact of these changes.