Headlines
▌IRS Finalizes New Regulations for Cryptocurrency Taxation in the United States
The IRS has finalized new regulations regarding 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, announced by the IRS and the U.S. Treasury on Friday, essentially implement a provision from the Biden administration’s Infrastructure Investment and Jobs Act of 2021. Even without these new rules, cryptocurrency holders are already obligated to pay taxes. However, there hasn’t been a standardized way to report holdings to government and individual investors.
Effective 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 tax process for cryptocurrencies, the IRS stated it is actively working to combat tax evasion.
▌Curve Founder Delivers 7.5 Million CRV Tokens to Christian
According to blockchain analyst Yu Jin, the founder of Curve has stated that the 30 million CRV tokens sold to Christian will be delivered by mid-August, as 24.7 million CRV will only complete unlocking by August 12. Currently, 7.5 million CRV tokens have been delivered to Christian, along with the remaining unlocked tokens. This signifies that by August 12, all of Curve founder’s CRV tokens will have completed unlocking. Additionally, 103 million CRV tokens are locked until June 2028.
Market Update
As of press time, according to Coingecko data:
BTC traded at $60,800.46, with a daily change of +0.12%;
ETH traded at $3,374.18, with a daily change of -0.4%;
BNB traded at $569.69, with a daily change of +0.07%;
SOL traded at $140.06, with a daily change of -1.07%;
DOGE traded at $0.1214, with a daily change of -1.86%;
XPR traded at $0.4722, with a daily change of -0.06%.
Policy
▌Former SEC Chairman: Burden of Proof Always Rests with SEC to Prove a Product is a Security
Former SEC Chairman John Reed Stark stated that the burden of proof always rests with the SEC to prove that a product is a security. According to Stark, judges only require the SEC to prove that purchasers of Binance products are “investors” who buy these products expecting price appreciation, rather than “customers” who buy them because the products offer practical utility (such as trading discounts).
According to the judge, if a digital asset security transforms into a utility tool in some manner rather than an investment speculative tool, then “it is no longer a security.” The judge explicitly rejected the perplexing finding in the Ripple ruling that there must be some contractual relationship between investors and issuers in the secondary market to trigger registration requirements, a conclusion unsupported by any form of endorsement or even citation by other regional courts.
▌Vitalik Buterin: Cryptocurrency Regulation Has Created a “Stateless Tyranny”
Responding to a user on the social media platform Warpcast based on the Farcaster protocol, Vitalik Buterin described a situation where current regulatory measures have effectively cornered honest cryptocurrency developers. The primary challenge of cryptocurrency regulation (especially in the United States), according to Buterin, is that if you do something useless or ask people for money in exchange for vague mentions of potential returns, you are free and clear, but if you try to clearly explain to your customers where returns come from and promise them certain rights, then you are doomed because you are a “security.” The incentive gradient created by this “stateless tyranny” is ultimately worse than pure anarchy or pure tyranny. In the absence of regulation, social media and sharing platforms seem to have an endless stream of bad actors, scammers, and baseless pumpers.
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, which has not finalized rules on unhosted wallet and associated unhosted software products. They stated that these products are still under review and may be brokers, and they will determine their status later. The scope of “digital assets” under this final rule is too broad and repulsive. Each NFT disposal is a reportable event. Every stablecoin disposal is also the same. If you don’t submit a form to the IRS explaining that your profits or losses are a fraction of a cent, you won’t be able to convert USDC into dollars on the exchange.
▌Consensys Software: SEC’s Actions Are Regulatory Overreach
Consensys Software issued a statement in response to SEC charges alleging the company engaged in unregistered securities issuance through Metamask staking and swaps. Consensys believes the SEC’s actions are regulatory overreach and pledges to defend its position in court, emphasizing the broader impact on the web3 ecosystem. On Friday, Consensys Software issued a statement responding to SEC allegations. The SEC accuses Consensys of engaging in unregistered securities issuance and sales through a service called Metamask Staking and operating as an unregistered broker through Metamask Staking and another service called Metamask Swaps.
▌U.S. Federal Judge Upholds “Most” of SEC’s Charges Against Binance
A U.S. federal judge upheld most of the SEC’s charges against Binance, believing the company may have offered unregistered investment products, violating anti-fraud provisions. The judgment found most of the agency’s arguments reasonable and rejected certain arguments raised by Binance, which were also dismissed by other judges, such as the Major Questions Doctrine, implying the SEC lacks complete authority over the cryptocurrency industry. Additionally, the court determined that CZ, Binance’s founder and former CEO, is currently serving time in prison following Department of Justice charges against Binance, and given his control over Binance, he may be personally liable for Binance’s violations. However, the judge also dismissed some appeals related to certain charges. Judge Amy Berman Jackson’s ruling stated these charges did not meet the Chevron deference standard. Judge Jackson also dismissed charges related to BNB’s secondary sales and Binance’s Earn Vault, but charges against Binance’s BUSD sales 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 Costs 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 costs on the blockchain, significantly reducing L2 transaction costs by 90% and enhancing network performance.
▌Hamster Kombat Becomes the Third-Fastest App to Reach 150 Million Users in History
TON’s Hamster Kombat, an augmented reality mobile game launched in 2016, reached 150 million users in just 33 days, maintaining that record until the summer of 2023, when Instagram’s X competitor Threads achieved the same milestone in just six days. Additionally, Hamster Kombat became the first YouTube channel to gain over 10 million users in a week, with the team applying for a Guinness World Record for this achievement.
Cryptocurrency
▌Solana Chain: NFT Minting Surpasses 500 Million Tokens
SolanaFloor announced on X platform that NFT minting on the Solana chain has surpassed 500 million tokens, with a majority utilizing the new compressed NFT standard. Additionally, the collection totals over 100,000, with over 49 million collection addresses.
▌FTC Issues Warning to Consumers About Surge in Social Media Investment Scams, Particularly in Cryptocurrency Investments
The Federal Trade Commission (FTC) has issued a warning to consumers about a surge in social media investment scams, particularly in cryptocurrency investments. These scams involve fraudulent claims of guaranteed high returns with almost no risk. The FTC advises consumers to disregard such information and reminds them that all investments carry inherent risks. The FTC issued the consumer alert on Friday, authored by FTC consumer education specialist Andrew Rayo, who noted that sudden investment information on social media is almost always a scam.
▌About 20 Minutes Ago, 9,764 ETH Transferred to Coinbase
According to Whale Alert monitoring, approximately 20 minutes ago, 9,764 ETH (worth approximately $32,966,189) was transferred from an unknown wallet to Coinbase.
▌Approximately 6,257.55 BTC Flow into Exchange Wallets in the Last 24 Hours
According to the latest data, approximately 6,257.55 BTC flowed into exchange wallets in the last 24 hours, with 17,471.14 BTC flowing into exchange wallets in the last 7 days and 63,109.82 BTC flowing out of exchange wallets in the last 30 days. As of press time, the total balance in exchange wallets is 2,486,333.1 BTC.
Important Economic Developments
▌Strategist: Inflation and Employment Lay Groundwork for Fed Rate Cut in September
Seema Shah, Chief Global Strategist at Amundi Asset Management, stated: Friday’s PCE data met expectations, which is a relief and something the Fed would welcome. However, the policy path remains uncertain. Further deceleration in inflation, coupled with more evidence of a softening labor market, will pave the way for the first rate cut in September.
▌Economist El-Erian: Economic Slowdown Increases Risks of Fed Policy Mistakes
Mohamed El-Erian stated that weakness in favored inflation indicators highlights how economic slowdown exacerbates risks of central bank policy mistakes
