Quick Take
IRS finalizes DeFi broker reporting requirement.
Coin Center comments on IRS midnight broker rule.
Tim Beiko shares an ACD 2024 Recap.
Reservoir Swap goes live on Ink.
IRS Finalizes DeFi Broker Requirement
The IRS and the Department of the Treasury have finalized regulations that now require DeFi protocols that facilitate digital asset sales to collect and report information to the IRS about their users. The rule also requires protocols to furnish a new form to their users, called 1099-DA, outlining taxes due to the government. The new regulations were first proposed as part of the Biden-Harris Administration’s implementation of the Infrastructure Investment and Jobs Act (IIJA) in 2021. Scheduled to take effect on January 1, 2027, the new rule classifies DeFi Brokers under the same tax reporting requirements as centralized exchanges.
Coin Center On IRS Midnight Broker Rule
Coin Center released an analysis of the IRS's newly finalized "midnight broker rule," criticizing its imposition of inappropriate and unconstitutional KYC requirements on software providers. While Coin Center supports tax reporting obligations for custodial intermediaries, it strongly opposes extending the requirements to non-custodial entities like software developers. With the rule now finalized, Coin Center is urging the incoming Congress to invoke the Congressional Review Act (CRA) to rescind it. Coin Center also calls for lawsuits to challenge the rule's constitutionality. Coin Center has a track record of successfully litigating against the U.S. government, including a victory in the appeal of the IRS's Form 6050I reporting requirement.
Ethereum ACD 2024 Recap
Ethereum core developer Tim Beiko published a recap of improvements made to the AllCoreDevs (ACD) process in 2024. Client teams shifted to written upgrade preferences, which improved asynchronous input collection and allowed teams to review EIPs ahead of calls. Synchronous discussions are now reserved for high-priority proposals. Another improvement in 2024 was the introduction of EIP-7723, which established a formal guide for Network Upgrade Inclusion Stages. The guide outlines five stages: Proposed for Inclusion (PFI), Considered for Inclusion (CFI), Scheduled for Inclusion (SFI), Declined for Inclusion (DFI), and Included. Looking to the future, the Fusaka upgrade, planned after Pectra, will focus on EOF and PeerDAS. The upgrade following Fusaka, Amsterdam, will focus on Ethereum’s transition from Merkle to Verkle trees.
Reservoir Swap Live On Ink
Reservoir Swap, an alternative client for the Uniswap protocol, is now live on Ink, Kraken's OP Stack Layer 2 network. Users can now swap tokens, create and manage liquidity pools, and explore data for Uniswap V2 and V3 contract deployments on Ink. Powered by Reservoir infrastructure, the DEX client features instant bridging liquidity through Relay Protocol.
Other News
ETH bridged to Base 2x'd in 90 days
Erigon Benefits of Caplin
Talent releases Onchain Wrapped
Ethereum core dev updates sources
Fuel runs on Ethereum on ARM
State of Wallets 2024
USDY to go live on Plume
