The U.S. Department of the Treasury, in collaboration with the Internal Revenue Service (IRS), has unveiled a draft proposal targeting the reporting of digital asset transactions. While the proposal is still in its preliminary stage, it has already sparked debate within the crypto industry, particularly concerning the treatment of decentralized exchanges. 

JPMorgan Chase analysts, including Nikolaos Panigirtzoglou, have forecasted a stabilization in the cryptocurrency market, according to a Bloomberg report. The analysts attribute this outlook to a decline in open interest in CME Bitcoin futures contracts. 

According to an announcement on Pepe's official X account, approximately 16 trillion $PEPE tokens, worth around $15 million, were allegedly moved without authorization to various cryptocurrency exchanges on August 24. 

Top stories in the Crypto Roundup today:

• U.S. Crypto Tax Reporting Proposal Met With Criticism from Crypto Sector
• JPMorgan Analysts See Light at the End of the Tunnel for Crypto Markets
• Alleged Theft of 16 Trillion $PEPE Tokens by 3 Former Team Members Shakes Community

U.S. Crypto Tax Reporting Proposal Met With Criticism from Crypto Sector

The U.S. Department of the Treasury, in collaboration with the Internal Revenue Service (IRS), has unveiled a draft proposal targeting the reporting of digital asset transactions. While the proposal is still in its preliminary stage, it has already sparked debate within the crypto industry, particularly concerning the treatment of decentralized exchanges.

The draft stipulates that brokers facilitating the sale and exchange of digital assets must report specific transactions, aligning them with existing financial reporting requirements. However, decentralized exchanges could find themselves ensnared in these reporting obligations, despite their claims of lacking the staff or management to handle such responsibilities.

The proposal is open for public comment until October 30, and public hearings are scheduled for November 7 and 8. This period allows the industry to voice its concerns and lobby federal officials before the rules are finalized.

Once the Treasury and IRS have considered all feedback, the regulations could be approved in their final form. However, the crypto industry has been granted some leeway, as the rules, if approved, would only come into effect for the 2025 tax year. This deferral provides the industry with additional time to prepare for the changes, which were initially expected to be implemented as early as next year.

The draft proposal is part of a broader effort by the Biden-Harris Administration to close tax compliance gaps and address potential risks of tax evasion in the rapidly growing digital asset sector. The proposal also outlines a timeline for implementation, stating that brokers would be required to start reporting digital asset sales and exchanges beginning in 2026, covering transactions made in 2025.

JPMorgan Analysts See Light at the End of the Tunnel for Crypto Markets

JPMorgan Chase analysts, including Nikolaos Panigirtzoglou, have forecasted a stabilization in the cryptocurrency market, according to a Bloomberg report. The analysts attribute this outlook to a decline in open interest in CME Bitcoin futures contracts.

Open interest is a metric that represents the total number of unsettled derivative contracts, such as futures and options. It serves as a tool for traders to gauge market sentiment and potential trend changes. An increase in open interest usually confirms an existing trend, while a decline suggests a trend may be ending.

The analysts noted that Bitcoin's price has dropped around 12% in the past two weeks but believe the selloff is nearing its conclusion. They also discussed various factors that initially triggered the selloff, including pending decisions on Bitcoin ETF approvals and the SEC's planned appeal against a court ruling favorable to Ripple Labs.

Additionally, the report mentioned that the crypto market's pullback is partly influenced by a broader correction in risk assets like equities, driven by factors such as rising U.S. real yields and concerns about China's economic growth.

The JPMorgan team concluded that the unwinding of long positions in the crypto market is mostly complete, which limits the downside for cryptocurrencies in the near term.

Alleged Theft of 16 Trillion $PEPE Tokens by 3 Former Team Members Shakes Community

According to an announcement on Pepe's official X account, approximately 16 trillion $PEPE tokens, worth around $15 million, were allegedly moved without authorization to various cryptocurrency exchanges on August 24. The announcement also noted that the required signer count for the multisig CEX Wallet from which the tokens were moved was reduced to just two out of eight, leaving 10 trillion tokens in the wallet.

The X account's statement talked about ongoing internal conflicts that have reportedly plagued the $PEPE project since its launch on April 17. It alleged that a faction within the team, motivated by "big egos and greed," had been hindering the project's progress. These three individuals are purportedly responsible for the unauthorized transactions and have since removed themselves from the project, even going so far as to delete their social media accounts.

The individual behind the X account expressed regret for the situation and assured the community that the remaining 10 trillion tokens are secure. They also outlined future plans for the project, including discussions with prominent community members and the transfer of the remaining tokens to a new, secure wallet.

The $PEPE token's value has seen a significant drop, currently trading at approximately $0.000000869, which represents an 0.89% decrease in the last 24 hours and a 20.27% decline in the past seven-day period.

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