A bipartisan team of lawmakers in the U.S. is introducing a bill to narrow some of the cryptocurrency tax reporting rules that were included in the infrastructure bill which is set to become law on Monday, November 22.

The U.S. Justice Department is set to sell $56 million worth of cryptocurrency it seized as part of its case against BitConnect, a cryptocurrency Ponzi scheme that, through promoters, swindled thousands of investors out of $2 billion.

Large publicly-traded bitcoin miners are accumulating bitcoin by raising capital or leveraging their BTC holdings to help cover operating costs rather than selling it for fiat currency. By loaning their bitcoin holdings to earn fiat currency, they are able to cover operating expenses.

Sponsored: You’ve probably heard all about Curve Finance, the popular decentralized exchange for stablecoins, but may be put off by having to manage another on-chain wallet. Bybit has simplified the process for users like you, so you can get easy access to DeFi on Bybit.

Top stories in the Crypto Roundup today:

• Lawmakers Seek Fix to Crypto Reporting in U.S. Infrastructure Bill
• U.S. to Sell $56 Million in Crypto Seized in Case Against BitConnect
• Publicly-Traded Bitcoin Miners Are Stashing BTC
• What are Axie Infinity Shards (AXS)?
• Sponsored: Check Out The Newest Liquidity Mining Pool on Curve Finance

Lawmakers Seek Fix to Crypto Reporting in U.S. Infrastructure Bill

A bipartisan team of lawmakers in the U.S. is introducing a bill to narrow some of the cryptocurrency tax reporting rules that were included in the infrastructure bill which is set to become law on Monday, November 22.

The new bill seeks to override a provision that is believed to be too broad, to the point it would stifle growth in the space. Senate Finance Committee Chairman Ron Wyden, an Oregon Democrat, and Senator Cynthia Lummis, a Wyoming Republican, wrote the change. In a statement, Wyden said:

“Our bill makes clear that the new reporting requirements do not apply to individuals developing blockchain technology and wallets.”

Wyden added the bill will protect innovation while “ensuring those who buy and sell cryptocurrency pay the taxes they already owe.” The legislation would address tax-reporting requirements for digital currencies that would require entities like miners and software developers to report tax data to the Internal Revenue Service that they do not have access to.

U.S. to Sell $56 Million in Crypto Seized in Case Against BitConnect

The U.S. Justice Department is set to sell $56 million worth of cryptocurrency it seized as part of its case against BitConnect, a cryptocurrency Ponzi scheme that, through promoters, swindled thousands of investors out of $2 billion.

The scheme, according to the Justice Department, was the largest cryptocurrency fraud ever criminally charged. Proceeds from the sale will be used to help pay back victims of the scam, the Justice Department added.

The cryptocurrency being sold was seized from BitConnect’s top promoter, 44-year-old Glenn Arcaro, who pleaded guilty in federal criminal court for his role in the case. Along with BitConnect founder Satish Kumbhani, Arcaro told investors they could expect monthly returns as high as 40%.

In September, the Securities and Exchange Commission (SEC) sued Kumbhani for raising $2 billion from investors in an offering that was not properly registered with regulators. In May, it sued five BitConnect promoters who received commissions from video testimonials on YouTube.

Publicly-Traded Bitcoin Miners Are Stashing BTC

Large publicly-traded bitcoin miners are accumulating bitcoin by raising capital or leveraging their BTC holdings to help cover operating costs rather than selling it for fiat currency. By loaning their bitcoin holdings to earn fiat currency, they are able to cover operating expenses.

Hut 8 Mining has reportedly been loaning out 2,000 BTC – nearly 40% of its stash – to earn a 2% interest rate. At current prices, 2,000 BTC are worth around $130 million, meaning the firm is earning an annualized $2.6 million.

Hut 8 Mining now has 5,503 BTC in its treasury after growing its holdings 68% since March. Its BTC holdings are behind only those of Marathon Digital Holdings, which holds 7,453 BTC. Behind Hut 8 is Riot Blockchain, with 3,995 BTC, followed by Bitfarms0 with 2,312.

Hut 8 deploys 1,000 BTC with Genesis Global Capital and 1,000 with Galaxy Digital, which is then used for institutional trading arbitrage opportunities.

What are Axie Infinity Shards (AXS)?

Axie Infinity Shards (AXS) are the governance token of the popular blockchain-based game Axie Infinity. The game was created by SkyMavis and allows players to earn income through non-fungible tokens (NFTs), by breeding, battling, and trading digital pets called Axies.

Players need AXS tokens to trade Axies and can stake their coins to earn weekly rewards and participate in the protocol’s governance. New players have to buy at least three tokens, priced in ether, to truly participate in the game.

Each Axie is an NFT on its own with different attributes. These pets can enter battles to earn experience points and more. They can also be bred together to create new Axie NFTs with different attributes. These new Axies can then be used or sold on the Axie marketplace.

Bybit’s DeFi Mining - Check Out The Newest Liquidity Mining Pool on Curve Finance

You’ve probably heard all about Curve Finance, the popular decentralized exchange for stablecoins, but may be put off by having to manage another on-chain wallet. 

Bybit has simplified the process for users like you, so you can get easy access to DeFi on Bybit. 

All you have to do so:

1. Choose among 7-, 14-, and 21-day product plans.
2. Stake USDT. 
3. Sit back and collect your rewards.

It’s that easy. 

Terms and conditions apply. Check it out now!

Press Release

State of the Crypto by Top Tier Exchange Volume

Build your project with CoinDesk Data

Terms | Privacy

13 Charles II St, SW1Y 4QU

London, UK

This email may include advertisements by third parties. None of the advertised or promoted products and services have been verified or approved by us and this email is not any endorsement by us of the third party or of their products or services.