TLDR CRYPTO 2023-08-28

BIDEN ADMINISTRATION UNVEILS NEW CRYPTO TAX REPORTING RULES

The US Treasury Department is proposing a new rule to place tighter requirements on brokers to report user transactions to the IRS. The way it’s written also seems to include decentralized exchanges and NFT marketplaces, meaning those entities would be required to collect customer information. The proposed Form 1099-DA is said to help simplify the process for users to report their gains and losses. This proposal comes as part of the 2021 Infrastructure Investment and Jobs Act and is expected to take effect in 2025.

BINANCE DROPS SANCTIONED RUSSIAN BANKS FROM PEER-TO-PEER SERVICE

Binance has cut off user access to a number of sanctioned Russian banks for peer-to-peer transactions. This comes in the wake of media reports suggesting the platform was enabling Russians to transfer money overseas. Binance is purportedly in the process of strengthening compliance policies, reinforcing its commitment to operate within global regulatory standards. However, some users said in a group chat they were still able to use the blacklisted banks by exploiting other available payment options.

HASHKEY TO START CRYPTO RETAIL TRADING SERVICE IN HONG KONG TODAY

HashKey Exchange is launching crypto trading services for retail clients in Hong Kong starting today. It will initially offer trading of BTC and ETH. HashKey is the first crypto business in Hong Kong to receive a license to offer such services. It is looking to partner with at least 5 brokerages to offer crypto trading services through its platforms.

CHAINS

Paradigm has announced the alpha release of a developer-focused open-source wallet tool called Rivet. Rivet is designed to improve the web3 frontend development experience by allowing developers to examine, modify, and handle state changes on a local Ethereum node. The project seeks to enhance productivity and encourage robust testing and debugging against a local node, tapping into a kind of functionality inaccessible in regular consumer wallets.

BRIDGEKIT - THE EASIEST WAY TO BUILD MULTICHAIN DAPPS

This repository contains a plug-and-play React library called BridgeKit that enables in-app cross-chain bridging and swaps in decentralized applications. It describes the simple setup process. BridgeKit provides an array of different bridging options for users to utilize in apps.

8 AIRDROPS IN ONE STRATEGY

This thread lays out a step-by-step guide to making transactions that could qualify you for eight different airdrops. Projects include familiar names such as LayerZero Labs, zkSync, Scroll, and Zora. Several of these airdrops like LayerZero, zkSync, and Scroll have been highly anticipated based on the vast amounts of funding the companies have raised.

COLLECTING THE ALGORITHM: A PRIMER FOR ON-CHAIN GENERATIVE ART

This blog explains how on-chain generative art is seen as the new frontier for many collectors. Generative art’s value as a digital asset has begun to move beyond speculation to legitimate appreciation and collectibility. It offers benefits including verifiable provenance, no deterioration over time, instant ownership transfers, and trustless sales. The post also articulates how this new form of appreciating and collecting art could attract new generations of collectors, most of whom are digitally native.

KITE OR BOARD

This essay discusses the concept of fiscal dominance, where the central bank is forced to prioritize government debt funding over maintaining low inflation. It references a paper by Dr. Charles Calomiris, which suggests that the Federal Reserve and US Treasury may resort to such a strategy to address the high levels of government debt and deficits. The essay argues that this could lead to the Fed reducing interest rates, increasing bank reserve requirements, and pushing capital out of the banking system and into alternative assets like crypto.

ON OP’S SUPERCHAIN MODEL AND POTENTIAL CHALLENGES

This post walks through some of the incentives issues that could plague OP’s Superchain model. It specifically focuses on Base’s share of OP tokens and how there are seemingly no restrictions on its sales of those tokens.

This thread is the first part in a series by a former Alameda Research Engineer that gives an inside look into FTX and Alameda and the nature of the relationship between the two companies.

OVER

Jerome Powell continues to hold the position that the fight against inflation is not over and that more rate hikes will likely be necessary.

WALLET

Last week, three ex-team members of PEPE, the memecoin, allegedly stole $15 million, sold the tokens, and deleted their social accounts, causing an 18% drop in PEPE and sending shockwaves throughout the rest of the memecoins.