CoinDesk Report:
Headline
▌IRS Finalizes New Regulations for Cryptocurrency Taxation
The IRS has finalized new regulations for cryptocurrency taxation, requiring cryptocurrency exchanges to report transactions to the IRS starting from 2026. However, decentralized platforms without custody of assets will be exempted. These regulations, finalized by the IRS and the U.S. Treasury Department on Friday, effectively implement a provision from the Biden administration’s 2021 Infrastructure Investment and Jobs Act. Even without these new rules, cryptocurrency holders are obligated to pay taxes; however, there has been no standardized method for reporting these holdings to the government and individual investors.
Starting from 2026 (covering transactions from 2025), cryptocurrency platforms must provide standardized 1099 forms, similar to those sent by banks and traditional brokerage firms. In addition to simplifying the cryptocurrency taxation process, the IRS also stated it is actively combating tax evasion.
▌Curve Founder Delivers 7.5 Million CRV Tokens to Christian
According to on-chain analyst Yu Jin, the founder of Curve has announced the delivery of 30 million CRV tokens sold to Christian, with 24.7 million CRV tokens scheduled to be fully unlocked by August 12th. Currently, 7.5 million CRV tokens have been delivered to Christian, which, along with the remaining unlocked tokens, fulfills the agreed-upon amount. By August 12th, all of Curve founder’s CRV tokens will be fully unlocked. Additionally, he has locked 103 million CRV tokens until June 2028.
Market Update
As of the time of writing, according to Coingecko data:
BTC recent trading price is $60,800.46, with a daily change of +0.12%;
ETH recent trading price is $3,374.18, with a daily change of -0.4%;
BNB recent trading price is $569.69, with a daily change of +0.07%;
SOL recent trading price is $140.06, with a daily change of -1.07%;
DOGE recent trading price is $0.1214, with a daily change of -1.86%;
XPR recent trading price is $0.4722, with a daily change of -0.06%.
Policy
▌Former SEC Chairman: Burden of Proof Always Lies with SEC to Prove Something is a Security
Former SEC Chairman John Reed Stark stated that the burden of proof always lies with the SEC to prove that a product is a security. According to Stark, judges only require the SEC to prove that those who purchased Binance products were “investors” seeking price appreciation, rather than “customers” seeking practical utility (such as trading discounts). Stark emphasized that if digital asset securities transition in some way to a utility tool rather than an investment speculative tool, they “cease to be a security.” Stark highlighted a judge’s rejection of a perplexing finding from the Ripple ruling, stating that there must be some contractual relationship between investors and issuers in the secondary market to trigger registration requirements, a conclusion unsupported by other court jurisdictions.
▌Vitalik Buterin: Cryptocurrency Regulation has Created “Anarcho-Tyranny”
Vitalik Buterin described a scenario where current regulatory measures have essentially cornered honest cryptocurrency developers. He stated that the primary challenge of cryptocurrency regulation (especially in the U.S.) is that if you do something useless or ask people for money in exchange for vague promises of potential returns, you’re free and clear, but if you try to clearly explain where returns come from and promise rights to your customers, you’re doomed because you’re a “security.” The incentive gradient created by this “anarcho-tyranny” will ultimately be worse than pure anarchy or pure tyranny. According to Buterin, bad actors, scammers, and baseless promoters on social media and sharing platforms appear endless in a state of anarchy. Previously, Buterin proposed three suggestions aimed at addressing the problem of “useless” cryptocurrency products and services.
▌Consensys Chief Legal Officer: IRS Cancels Final Broker Reporting Rule for Us
Consensys Chief Legal Officer Bill Hughes stated that the IRS has canceled a final broker reporting rule for us, and it has not finalized rules for non-custodial wallets and related non-custodial software products. They indicated that these products are still under review, may be brokers, and their status will be determined later. This final rule’s scope of “digital assets” is too broad and objectionable. Each NFT disposal event is reportable. So is each stablecoin disposal. If you don’t submit a form to the IRS explaining that your profit or loss is a fraction of a cent, you won’t be able to exchange USDC for dollars on the exchange.
▌Consensys Software: SEC’s Actions are Regulatory Overreach
Consensys Software issued a statement in response to SEC allegations that the company engaged in unregistered securities issuance through Metamask staking and swaps. Consensys believes that the SEC’s actions are regulatory overreach and pledges to defend its position in court, emphasizing the broader implications for the web3 ecosystem. On Friday, Consensys Software issued a statement responding to SEC charges. The SEC charged Consensys with engaging in unregistered securities issuance and sales through a service called Metamask Staking and operating as an unregistered broker through another service called Metamask Swaps.
▌U.S. Federal Judge Upholds “Most” SEC Charges Against Binance
A U.S. federal judge upheld “most” of the SEC’s charges against Binance, suggesting that the company may have offered unregistered investment products, violating anti-fraud provisions. The ruling found most of the agency’s arguments reasonable and rejected certain arguments raised by Binance, which were also rejected by other judges, such as the Major Questions Doctrine implying that the SEC lacks full authority to regulate the cryptocurrency industry. Additionally, the court found that CZ, Binance’s founder and former CEO, is currently serving prison time in another case brought by the Justice Department against Binance, and given his control over Binance, he may be personally liable for Binance’s misconduct. However, the judge also dismissed certain appeals related to some of the charges. Judge Amy Berman Jackson’s ruling indicated that these charges did not meet the Chevron test. Judge Jackson also dismissed allegations related to BNB secondary sales and Binance’s Simple Earn project, but charges against Binance’s Earn Vault will continue. Among the 13 charges, only one charge (related to BUSD sales) was completely dismissed.
Blockchain Applications
▌BNB Chain: This Upgrade Optimizes Data Storage and Processing on the Blockchain, Reducing L2 Transaction Costs by 90%
BNB Chain announced a transformative upgrade with the launch of BEP336. This upgrade optimizes data storage and processing on the blockchain, significantly reducing L2 transaction costs by 90% and improving network performance.
▌Hamster Kombat Becomes the Third Fastest App to Reach 150 Million Users in History
TON ecosystem game Hamster Kombat became the third fastest application in history to reach 150 million users, surpassing the milestone in just 33 days after its 2016 release. This record was held until the summer of 2023, when Instagram’s X competitor Threads achieved it in just six days. Additionally, Hamster Kombat became the first YouTube channel to gain over 10 million users within a week, and the team has applied for a Guinness World Record for this achievement.
Cryptocurrency
▌Solana Chain: NFT Minting Exceeds 500 Million Tokens
SolanaFloor announced on X platform that the number of NFTs minted on the Solana Chain has exceeded 500 million tokens, with the majority using new compressed NFT standards. Meanwhile, the total collection exceeds 100,000, and collection addresses exceed 49 million.
▌FTC Warns Consumers of Surge in Social Media Investment Scams, Especially in Cryptocurrency Investments
The Federal Trade Commission (FTC) has issued a warning to consumers about a surge in social media investment scams, especially in cryptocurrency investments. These scams involve fraudulent claims of guaranteed high returns with almost no risk. The FTC advises consumers to ignore such messages and reminds them that all investments carry inherent risks. The FTC issued the consumer alert on Friday. The alert, written by FTC consumer education specialist Andrew Rayo, states that sudden investment information on social media is almost always a scam.
▌About 9,764 ETH Transferred to Coinbase About 20 Minutes Ago
According to Whale Alert monitoring, approximately 9,764 ETH (valued at approximately $32,966,189) was transferred from an unknown wallet to Coinbase about 20 minutes ago.
▌About 6,257.55 BTC Flow into Exchange Wallets in the Past 24 Hours
According to the latest data, about 6,257.55 BTC flowed into exchange wallets in the past 24 hours, with 17,471.14 BTC flowing into exchange wallets in the past seven days and 63,109.82 BTC flowing out of exchange wallets in the past 30 days. As of the time of writing, the total balance in exchange wallets is 2,486,333.1 BTC.
Important Economic Trends
▌Strategist: Inflation and Employment Lay Groundwork for Fed Rate Cut in September
Seema Shah, Chief Global Strategist at Principal Global Investors, stated that Friday’s PCE data met expectations, which is a relief, and the Fed will welcome this situation. However, the policy path remains uncertain. Further evidence of slowing inflation, coupled with softening labor market indicators, will pave the way for a rate cut in September.
▌Economist El-Erian: Economic Slowdown Heightens Risks of Fed Policy Mistakes
Mohamed El-Erian stated that softening favored inflation indicators highlight how economic slowdown is amplifying risks of central bank policy mistakes. “The speed of economic slowdown exceeds that of
