State of the Market #76
Biden’s 2022 Includes Crypto Reporting Proposals
President Biden’s 2022 budget includes language that would increase reporting on crypto assets. The proposal would take effect on tax returns filed after December 31st 2022 and would require crypto asset exchanges and wallet providers to report information to the IRS on gross proceeds, sales, and “substantial foreign owners”. This comes in response to “Tax evasion using crypto assets is a rapidly growing problem” and just over a week after the Treasury Department proposed that financial institutions and other business that receive over $10,000 in crypto transfers report it.
Guggenheim Co-founder says Ethereum has “much higher utility” than Bitcoin
Todd Morley, the co-founder of the investment firm Guggenhiem Partners, told Bloomberg TV that he sees Bitcoin as “a thing” while “Ethereum to me has much higher utility through smart contracts”. In a wide ranging appearance, he also discussed building a new “blockchain tower” in New York where he plans to host the world’s largest NFT Museum.
Belt Finance Loses $50M in Hack
Belt Finance, a platform that provides automated market making for DeFi, lost $50M in a flash loan attack. The hacker created a smart contract using PancakeSwap and exploited its belBUSD pool to profit $6.23M, with $43.8M in fees coming as a loss to the beltBUSD pool. Belt Finance paused withdrawals and deposits and is working on a compensation plan for its users.
Mark Cuban Talks Crypto Investing
Mark Cuban talked about what he looks for when when evaluating different blockchains. While most people “look at speed and cost compared to BTC or ETH” Cuban said he. “look[s] at blockchains as networks with development platforms via smart contracts”. This is good news for Ethereum and it’s push towards being the true infrastructure platform for DeFi.
Chart of the Week
With over $14B staked and over 50k validators, Ethereum 2.0 is the largest proof-of-stake network and isn’t even functional yet.
Video of the Week
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