Regulation
Treasury and IRS Finalize Broker Rule, Defers DeFi Decision

The US Department of the Treasury and the Internal Revenue Service (IRS) have released new tax guidelines for cryptocurrency brokers, which implements transaction reporting starting from 2025. This new regime, however, has postponed decisions on DeFi activities and unhosted wallet providers, since the IRS is still reviewing the 44,000 comments made by the public.
IRS’s New Reporting Requirements for Brokers
The new IRS rules requires the cryptocurrency brokers such as the trading platforms, hosted wallet services, and the digital asset kiosks to disclose the details of the customers’ asset movements and gains.
These rules, which will take effect from January 1, 2025, seek to integrate crypto brokers with conventional investment firms to file for the 1099 forms and the cost basis data starting from the year 2026.
A saving grace amongst all the crypto regulatory news today : at least we won’t have to write a response to the final rulemaking on the IRS broker rule and non-custodial entities over the 4th of July week: pic.twitter.com/CbLfwIBoGY
— Peter Van Valkenburgh (@valkenburgh) June 28, 2024
Also, the IRS has clarified that the new requirements will also include stablecoin transactions and any high-value non-fungible tokens (NFTs), but ordinary sales of stablecoins below $10,000 and NFT gains below $600 annually do not need to be reported. This regulation is meant to enhance the compliance and decrease the evasion of taxes in the high-risk area of digital assets.
Deferred Decisions on DeFi and Unhosted Wallets
While the new rule provides clear directives for the big centralized exchanges like Coinbase and Kraken, it leaves decisions concerning DeFi activities and unhosted wallets’ providers to a later time.
The IRS added that the non-custodial industry participants would not be barred from being treated as brokers but more analysis is required. The final rules for these entities are expected to be released in the later part of the year.
The IRS highlighted the difficulties of controlling non-custodial companies, noting that such firms may not possess the necessary customer data and transparency frameworks. This decision provides some reprieve to the DeFi sector and unhosted wallet providers as more time is bought in the formulation of better rules.
IRS Requirements for Stablecoins and NFTs
The IRS has explained that most ordinary stablecoin transactions will not need to be reported, with certain exceptions for large transactions and those generating more than $10,000 in annual revenue.
Stablecoin transactions will be recorded in a grouped manner rather than specific transactions to relieve the common cryptocurrency users while at the same time helping the IRS track whales’ activities.
For non-fungible tokens (NFTs) only those taxpayers who have earned $600 or more annually from NFT sales must file and report their total income. The IRS will require the taxpayer identification information, the number of NFTs sold, and the amount of profit made in these reports. The agency will oversee NFT reporting to ensure that it adequately helps in the enforcement of tax laws.
Industry Concerns and Compliance Burden
Introducing these tax regulations has been controversial, with significant pushback from the cryptocurrency industry. Concerns have been raised about the potential overreach of the U.S. government and the burdensome requirements on entities that do not traditionally function as brokers, such as miners and software developers.
The Blockchain Association and the Digital Chamber had flagged the overbreadth of information requested and the substantial compliance burden. They argue that the proposed rule could require the submission of billions of forms, imposing significant costs and time constraints on brokers. The IRS has estimated that the new rule will affect about 15 million people and 5,000 firms.
In response, the IRS stated that it aims to balance the need for comprehensive reporting with the industry’s capacity to comply. The agency also noted that any future changes in legislation regarding stablecoins could lead to adjustments in the tax rules.
Read Also: Digital Chamber Flags Privacy Concerns In IRS Digital Asset Tax Draft
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.
Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin
In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.
Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.
Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.
“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.
In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.
Industry Players Are Bracing For New Stablecoin Regulations
Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.
For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.
Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.
New FDIC Guidelines on Crypto-Related Activities
The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.
Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.
This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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