Fed's Musallem: Tariff impact may not be felt until the end of the year or early next year

VeChain’s layer-1 blockchain platform VeChainThor is integrating Wanchain as a cross-chain bridge partner, allowing it to connect to over 40 blockchains as it eyes liquidity expansion. The integration brings Wanchain’s decentralized interoperability infrastructure to VeChainThor, with VeChain (VET) and other…

The US Treasury Department officially scrapped crypto broker reporting rules on Thursday, following a vote by Congress to revoke them under the Congressional Review Act, which President Trump signed in April. 💥 BREAKING: CRYPTO TAXES The US Treasury has removed crypto broker reporting rules — including Form 1099‑DA It was designed to require crypto brokers, including DeFi platforms, to report users’ digital asset transactions to the IRS for tax compliance Let’s gooo! 🔥 pic.twitter.com/dpGOASbW3Y — Real World Asset Watchlist (@RWAwatchlist_) July 10, 2025 The regulation titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales” was published December 30, 2024, and is intended to require certain decentralized finance industry participants to file information returns as brokers effective February 28, 2025. Source: federalregister.gov Under Public Law 119-5 and the Congressional Review Act, the final rule has no legal force or effect and is considered null and void, as if it had never taken effect. The Treasury is removing the rule from the Code of Federal Regulations and reverting to the previous text, which excluded entities solely engaged in validating distributed ledger transactions or selling hardware for private key control from broker reporting requirements. Republicans in Congress successfully challenged the Biden-era rule that would have classified DeFi platforms as brokers, requiring extensive data collection and reporting obligations. The Treasury estimated that billions in crypto-related taxes were going uncollected annually, but industry advocates argued that the requirements were technically impossible for decentralized platforms to implement. The regulation faced widespread criticism for misunderstanding decentralized technology and potentially driving innovation overseas, prompting legal challenges from the Blockchain Association and Texas Blockchain Council . Congressional Battle Over DeFi Innovation and Tax Compliance Senator Ted Cruz led the Congressional Review Act resolution alongside Representative Mike Carey, arguing the rule represented government overreach that would stifle American cryptocurrency innovation. Cruz stated the regulation “ directly and immediately would harm American cryptocurrency innovation and drive development overseas. “ 1/ @SenTedCruz ’s CRA resolution to roll back the DeFi Broker Rule – anti-crypto, anti-privacy IRS midnight rulemaking – is critical to providing clarity for crypto and DeFi in the US. Congress should vote YES on the CRA. This has been a long battle… How did we get here? 👇 — Kristin Smith (@KMSmithDC) February 12, 2025 The Joint Committee on Taxation estimated repealing the rule could cost the government nearly $4 billion over ten years in lost tax revenue. Despite projected losses, lawmakers supporting repeal prioritized privacy, technical feasibility, and innovation over tax collection efficiency. House Financial Services Committee Chairman French Hill also condemned the proposal as excessive government intervention, arguing that defining DeFi software providers as brokers would create costly reporting obligations for entities that never take custody of user funds. The regulation threatened to push American digital asset development overseas while undermining technological progress. White House Crypto Czar David Sacks supported the repeal effort, calling the regulation an “ 11th-hour attack on the crypto community by the Biden administration. ” The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th hour attack on the crypto community by the Biden administration. pic.twitter.com/T7Hxasb4aC — David Sacks (@davidsacks47) March 4, 2025 The administration positioned itself as strongly supportive of crypto industry concerns while establishing federal working groups on digital asset regulation. The successful repeal prevents the IRS from reintroducing similar proposals in the future, marking a significant victory for DeFi advocates. Broader Regulatory Shifts Signal Pro-Crypto Policy Direction The Treasury Department separately announced exemptions that will free banks and brokerage firms from reporting customers’ crypto holdings on financial statements, contingent upon demonstrating effective digital asset risk management capabilities. The SEC began issuing guidance clarifying that some crypto arrangements might not qualify as liabilities for reporting purposes. These regulatory relief measures came amid sustained Congressional pressure to revise the controversial SAB 121 accounting bulletin. While the Senate voted to overturn SAB 121 in May with 60 senators supporting repeal, President Biden’s veto prevented the measure from taking effect. States continue advancing Bitcoin legislation independently of federal action, with 23 states introducing Bitcoin reserve bills and 35 proposals under consideration. In fact, following that, Kentucky Governor Andy Beshear signed the “Bitcoin Rights” bill into law . Beyond the United States, Japan’s Senate has also recently approved legal amendments that give crypto brokerage firms increased operational freedom through new “intermediary business” categories, which come with reduced regulatory barriers. The legislation creates customer safeguards while promoting innovation, requiring the Prime Minister’s approval for crypto operators to hold assets domestically.

HSBC, the largest bank in Hong Kong, has successfully completed a series of blockchain experiments under the Hong Kong Monetary Authority’s (HKMA) Project e-HKD+. These tests were designed to explore the technical and commercial feasibility of issuing a central bank digital currency (CBDC) version of the Hong Kong dollar. HSBC conducted the experiments across a range of both public and private Distributed Ledger Technology (DLT) environments, including Arbitrum, Ethereum, Linea, and Polygon. The move reinforces the bank’s commitment to shaping the future of digital money and highlights its role as the first local bank to launch an on-chain settlement service in the region. Practical Use Cases and Public Sentiment The pilot focused on how a digital Hong Kong dollar could function in real-world scenarios. HSBC explored how e-HKD could serve not just as a store of value and a means of transfer, but also as a settlement utility for tokenised assets. Key areas of investigation included scalability across both public and private blockchains, the role of Privacy Enhancing Technologies (PET), and the use of Decentralised Identity (DID) systems to maintain security and user privacy. To complement its technical exploration, HSBC surveyed over 700 Hong Kong residents and investors. Findings revealed that 90% of respondents valued privacy in digital currency transactions. While just 42% of the general public said they were familiar with e-HKD, that figure rose to 65% among professional investors. Notably, one-third of participants expressed willingness to use e-HKD for trading digital assets, citing the perceived safety of a government-backed, blockchain-based currency. HSBC’s Broader Role in Hong Kong’s Digital Finance Push Beyond Project e-HKD+, HSBC said it is playing a leading role in Hong Kong’s broader digital asset initiatives. The bank is a member of the e-HKD Industry Forum and has supported related programs such as Project mBridge and Project Ensemble. It also helped issue the HKSAR Government’s digital green bonds and recently launched a Tokenised Deposit Service for corporate clients—Hong Kong’s first bank-led blockchain settlement solution. HSBC executives Luanne Lim and John O’Neill stressed the bank’s dedication to financial innovation and the advancement of secure, scalable digital currencies. More findings from Project e-HKD+ are expected to be released later this year, potentially laying the groundwork for a larger CBDC rollout in the region. Hong Kong CBDCs and Crypto Trading Licenses Hong Kong’s Securities and Futures Commission (SFC) has recently issued another license under the new crypto trading platform regime, granting approval to HKVAX following OSL and HashKey. ✅ Hong Kong's financial regulator has granted its third crypto trading license, with plans to approve more by the end of the year. #HongKong #Crypto https://t.co/K4DfrfbbHn — Cryptonews.com (@cryptonews) October 7, 2024