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Today's Top Crypto Headlines:
IRS Controversial Tax Rule | SEC Files Lawsuit Against Consensys | Farcaster In-App USDC Payments | Sony Japan Crypto Exchange | Pudgy Penguins Acquires Frame and more…
Hello Crypto Enthusiasts!
Glad to have you back for another edition of the UseTheBitcoin.com newsletter.
IRS Controversial Tax Rule: The IRS has released its final “broker rule” guidance, addressing concerns from crypto lobbyists about the impact on non-custodial platforms. The new rules will expand IRS oversight of crypto transaction tax reporting but leave the classification of decentralized, self-custodial applications under further review.
SEC Files Lawsuit Against Consensys: The SEC has filed a lawsuit against Consensys Software, alleging that the company failed to register as a broker and offered unregistered securities through its MetaMask software and staking programs.
Farcaster In-App USDC Payments: Farcaster co-founder Dan Romero announced an in-app payments feature using USDC stablecoins, integrated into the Farcaster client Warpcast. This feature simplifies crypto payments by using human-readable identities instead of alphanumeric wallet addresses.
Sony Japan Crypto Exchange: Sony Group is launching a cryptocurrency exchange subsidiary in Japan, revamping the trading platform WhaleFin acquired last year and rebranding it as S.BLOX Co.
💡Feature of the Day - Pudgy Penguins Acquires Frame: Igloo Inc., the parent company of the NFT project Pudgy Penguins, has acquired the web3 creator-focused platform Frame to develop Abstract Chain, a Layer 2 network aimed at fostering on-chain culture and communities.
All this and more in today’s headlines!
📰 News Highlights:
The IRS released the final version of its controversial “broker rule” guidance, postponing a decision that could affect non-custodial platforms. Crypto lobbyists had raised concerns that ambiguous language in earlier drafts might adversely impact the crypto industry, including wallet providers and decentralized exchanges.
The IRS's new rules, addressing "unhosted wallets" and related non-custodial software, remain under review. The updated regulations, first proposed in August 2023, aim to expand IRS oversight of crypto transaction tax reporting.
We have been waiting to learn how the IRS will interpret the broadly defined term "broker" in a provision sneakily added to the 2021 Infrastructure Bill.
Today we got the guidance.
Good news: They agree that custodial brokers are, well, brokers.
Our concern is whether or… x.com/i/web/status/1…
— Neeraj K. Agrawal (@NeerajKA)
8:46 PM • Jun 28, 2024
Coin Center's Chief Communications Officer, Neeraj Agrawal, highlighted that the IRS recognized custodial brokers as brokers but left open the question of whether decentralized, self-custodial applications would also be classified as brokers.
This uncertainty means exchanges like Kraken and Coinbase will be subject to the new rules, which will partly take effect in 2025, but non-custodial protocols will await further evaluation.
The SEC has filed a lawsuit against Consensys Software, alleging the company failed to register as a broker and offered unregistered securities. The suit specifically targets Consensys’s MetaMask software interface, claiming it must register as a securities broker.
Consensys fully expected the SEC to follow through on its threat to claim our MetaMask software interface must register as a securities broker. The SEC has been pursuing an anti-crypto agenda led by ad hoc enforcement action.
This is just the latest example of its regulatory… x.com/i/web/status/1…
— Consensys (@Consensys)
6:20 PM • Jun 28, 2024
Consensys anticipated this move and accused the SEC of regulatory overreach, arguing that the agency lacks authority to regulate software interfaces like MetaMask.
The lawsuit centers on MetaMask Swaps, which the SEC claims has brokered over 36 million crypto transactions since 2020, collecting over $250 million in fees.
The SEC's complaint extends to Consensys’s involvement in staking, alleging that the company offered and sold unregistered securities through Lido and Rocket Pool staking programs.
The regulator asserts that Consensys acted as an unregistered broker for these staking services, violating federal securities laws.
Farcaster In-App USDC Payments [Source]
Farcaster co-founder Dan Romero announced a new in-app payments feature using USDC stablecoins. The feature, integrated into the Farcaster client Warpcast, simplifies the process of sending crypto by eliminating the need to look up alphanumeric wallet addresses.
Instead, users can make one-tap payments directly from their profile or the app’s messaging platform, using human-readable Farcaster identities. Initially, the feature will utilize USDC on the Coinbase-built Base Ethereum scaling layer to minimize fees and confirmation times.
Introducing Pay on Warpcast
Pay someone with USDC in under 10 seconds.
- Mobile-first with your existing wallet
- No having to look up or remember an address.
- Close to instant confirmations and zero fees on @basex.com/i/web/status/1…— Dan Romero (@dwr)
7:40 PM • Jun 28, 2024
Romero emphasized the goal of making crypto payments as easy as possible within a daily-use app. While the feature will launch with USDC, Farcaster's open protocol allows for future integration with other currencies and blockchain networks.
Sony Group is set to launch a cryptocurrency exchange subsidiary in Japan by revamping the local trading platform WhaleFin, acquired last year. Rebranded as S.BLOX Co., the exchange will collaborate with Sony Group’s other businesses to enhance its crypto trading services.
Initially acquired by Singapore’s Amber Group in 2022, WhaleFin was subsequently purchased by Sony’s subsidiary Quetta Web Co. in August 2023. This acquisition marks a significant step in Sony’s broader efforts to expand its presence in the Web3 space.
Here is the Japanese article. If you may know, the head of web3 who is going to lead exchange at Sony is our external director of the company. We have made a plan of the chain layer 1.5 years ago and we entered the execution phase.
— Sota | Astar + Startale (@WatanabeSota)
3:28 AM • Jul 1, 2024
The conglomerate’s business division, Sony Network Communications, partnered with Japanese blockchain firm Startale Labs last year to build Sony’s public blockchain network. Startale’s external director is set to lead Sony’s new crypto exchange, further integrating Sony’s Web3 initiatives.
💡 Feature of the Day:
Igloo Inc., the parent company of the popular NFT project Pudgy Penguins, has acquired the web3 creator-focused platform Frame. The acquisition aims to develop Abstract Chain, a Layer 2 network designed to foster on-chain culture and communities.
I am thrilled to announce that we have acquired @frame_xyz and its team to contribute towards building @AbstractChain. By combining forces, we will provide the infrastructure and distribution necessary to usher crypto into the consumer crypto revolution.
— Luca Netz 🐧 (@LucaNetz)
8:44 PM • Jun 28, 2024
Frame’s platform offers permissionless creation of NFT marketplaces that enforce creator royalties and allocates Layer 2 gas fees to support creators. By combining forces, Igloo and Frame aim to pioneer a new era driven by the culture economy, empowering builders and introducing innovative economic mechanisms on-chain.
This collaboration is expected to enhance the reach and functionality of both platforms, fostering greater engagement within the web3 ecosystem.
😂 Crypto Meme of the Day:
And that’s it for this today.
With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.
See you all tomorrow’s edition!
Jonathan Gibson
UseTheBitcoin.com