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Crypto News Digest - Quick-read versions of cryptocurrency updates

IRS draft tax form for crypto defines unhosted wallets as brokers

The IRS targets unhosted crypto wallets in its draft 1099-DA reporting form, raising concerns among industry experts about privacy, security, and the feasibility of enforcement. Critics argue the IRS’ approach fails to consider the operational realities of unhosted wallets, potentially implicating end users in stringent KYC procedures. Despite these challenges, the form includes provisions for brokers on reporting transaction IDs and wallet addresses, with exceptions for transactions not conducted on-chain. The draft, part of ongoing efforts to regulate crypto under the 2021 Infrastructure Act, is still open for comments, indicating rules are not yet finalized.. Source

FTX investors agree to drop civil lawsuit against SBF if he snitches on celebrity promoters

FTX investors might drop claims against Sam Bankman-Fried for his cooperation against celebrities in a $1.3 million lawsuit involving Tom Brady and others, accused of promoting a Ponzi scheme. Bankman-Fried’s support includes sharing details about FTX-related entities and his investments. This proposed settlement, acknowledging his participation as valuable, awaits judge’s approval. This comes after Bankman-Fried’s conviction and 24-year sentence in a separate criminal case.. Source

AI and blockchain: A match made in heaven or hell

AI and blockchain technologies are merging, creating a burgeoning market with AI-linked crypto tokens now valued at $26.4 billion, a significant rise from $2.7 billion. This fusion offers new investment avenues, with AI crypto revenue predicted to hit $10.2 billion by 2030. Despite its infancy, this merger promises enhanced security and efficiency through real-time risk detection and immutable data records. However, it also raises substantial privacy and security concerns, necessitating ethical and safety standards to ensure these technologies benefit humanity. Global initiatives are underway to regulate AI development and ensure its safe integration with blockchain.. Source