Top Crypto Stories: UK Proposes Tax-Free DeFi, Bitcoin Surge Amid Another Bank Failure, Coinbase Sues The SEC, and Fantom To Launch a Crypto Bank.
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Welcome to this week’s edition of Crypto Weekly. In this issue, we cover the latest developments in the world of Web3, including top news such as:
We also have some additional news to share, such as Binance’s latest ETH staking feature, Mastercard’s recent partnership with Solana and Polygon, and PayPal’s ongoing expansion of its crypto services, among other updates.
Over the past week, the value of the cryptocurrency market has remained stable, with a market capitalization of $1.18T, as reported by Messari. As of now, Bitcoin is priced at $28,117, and Ethereum is trading at $1,831. Among the top 10 cryptocurrencies, Bitcoin has seen the highest increase in value this year, with a gain of +70.26%.
UK New Tax Proposal Could Shake the Foundations of DeFi
The UK government’s HM Revenue and Customs (HMRC) is seeking public opinion on its proposed amendment to DeFi lending and staking tax treatment. Under the proposed changes, DeFi transactions won’t be treated as disposals for tax purposes unless crypto assets are disposed of in a non-DeFi transaction.
The proposal includes treating all DeFi returns as revenue and subject to a new miscellaneous income charge. The proposed framework will apply to both DeFi and centralized finance (CeFi). The consultation will be open until June 22, 2023.
Bitcoin Sees Temporary Surge as Bank Failure Hits Markets
First Republic Bank, which has been struggling since March when other banks bailed it out following Silicon Valley Bank’s collapse, reported on Monday that it needs to lay off 20% or more of its employees after its deposits plummeted $100B last quarter. The bank is now expected to go into government receivership to avoid bankruptcy.
This news caused the stock price to drop by around -50% on Tuesday and another -30% the following day. Bitcoin, on the other hand, jumped more than +8% in a few hours, as bad news for banks is usually good news for Bitcoin. However, the price of Bitcoin dipped back to $27K the same day.
Coinbase Sues The SEC Over How Crypto Is Regulated
Coinbase, a leading cryptocurrency exchange, has filed a lawsuit against the US Securities and Exchange Commission (SEC), demanding that it publicly disclose its response to a petition submitted in July 2022 regarding the regulation of digital assets like cryptocurrencies.
Although the SEC did not offer a specific public response to the petition, it has recently increased its enforcement actions and warnings against crypto exchanges, including Coinbase. The exchange’s legal officer stated that the SEC has yet to tell the public if it has denied Coinbase’s petition, and the lawsuit seeks to force the regulator to share its decision. The move comes after Coinbase was warned of pending legal action by the SEC.
Fantom To Launch a Crypto-Friendly Bank and Card This Year
Fantom, a cryptocurrency platform, has announced plans to launch its own cryptocurrency bank offering tailored financial services to crypto users. The bank will allow users to store, exchange, and spend cryptocurrencies, as well as offering traditional banking benefits.
The platform’s co-founder, Andre Cronje, invited the crypto community to join the closed beta and announced that the payment card would be available by the end of 2023. However, it is unlikely that the bank will be accessible to US citizens due to regulatory issues.
If successful, the project could help Fantom differentiate itself from competitors and boost the adoption of its token (FTM).
Top Stablecoin Yield Pools (Single Exposure Filter)
Among the top stablecoin pools, Conic Finance’s USDC stayed on top for another week at 13.25% 30d Avg APY, followed by another USDC pool on Credix with 13.00%.
Top Blue-Chip Coins Yield Pools (Single Exposure + High Confidence Filters)
Instadapp’s ETH pool grew to $44.27M in TVL, offering a 30d AVG APY of 8.70%. Yearn Finance has two pools in the top 5 with a cumulative TVL of $175.16M.
Top ETH Liquid Staking Derivatives Pools
Lido’s STETH pool remains with the largest TVL share at $11.44Bn locked, offering 4.64% 30d Avg APY. Stafi’s RETH, on the other hand, tops the list at 6.38% with just $30.51M TVL.
It is evident that the US is facing challenges in regulating the crypto industry. However, many other countries have taken significant steps toward implementing more appropriate frameworks to support investors.
For instance, the UK’s proposed tax regulations for DeFi activities could be advantageous for users and encourage greater acceptance of decentralized finance. Additionally, Fantom’s cryptocurrency bank and customized financial services could set the platform apart from its competitors and elevate the adoption of its token.
Furthermore, notable entities like Mastercard, Google Cloud, and PayPal are expanding their involvement in the crypto space, indicating a growing interest and potential for widespread addoption. In contrast, persistent banking issues are reinforcing the confidence in Bitcoin.
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CEO at One Click Crypto
This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.
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