The Feds HATE Retail

“If it keeps up, man will atrophy all his limbs but the push-button finger.” - Frank Lloyd Wright

In today’s email:

• MicroStrategy has bought 5,445 BTC since August

• Gensler and the SEC getting pressure from the House

• The IRS is actively trying to kill crypto for US citizens

• 2 more NoShill Streams are live

MICROSTRATEGY

Software intelligence firm MicroStrategy has shared its latest Bitcoin investment via K1 filings. MicroStrategy accumulated 5,445 Bitcoin for about $147.3 million according to the regulatory filing. This brings the company’s total bitcoin treasury to more than 158,000 BTC, purchased at an average price of $29,582 per bitcoin.

These 5,445 were purchased from August to September of 2023. They plan to continue to add to that position over the coming months. The entities are stacking while the government is trying it’s best to kill crypto for retail….weird.

GENSLER

Four members of the House Financial Services Committee – including Rep. Tom Emmer, the majority whip in the House leadership – called on the SEC to move forward to approve ETF applications, and they'll be able to ask him about it at a hearing this week.

Rumors are that the SEC responded in less than an hour with more or less a “no”.

We think the goal is to tank the price to the “best deal” possible before approval.

IRS

Nearly two years ago, the Infrastructure and Jobs Act (IIJA) was passed, a significant bill that expanded broker information reporting to encompass digital asset transactions and mandated Internal Revenue Service (IRS) rulemaking to implement these regulations. Recently, the IRS released its long-awaited proposal, which could have a detrimental impact on the crypto landscape in America.

Under this proposed rule, newly designated brokers would be obligated to report sales and exchanges of digital assets. While the rule does exclude stakers and miners from reporting requirements, its broad scope threatens all facets of the crypto ecosystem.

By broadening the definitions of "digital assets" and "broker," the proposal would encompass individuals and projects that would not typically fall within the purview of these tax reporting obligations. These newly defined brokers would need to collect users' personal information, including names, addresses, and tax identification numbers, and provide them with a form 1099 to calculate gains and losses from digital asset sales that these brokers helped "facilitate."

The proposal raises numerous concerns for users, particularly regarding their privacy, security, and access to decentralized protocols. Most significantly, it creates impractical reporting requirements for various participants in the digital asset ecosystem, potentially forcing projects to cease operations or relocate offshore, thereby impeding innovation in blockchain technology within the United States.

The nature of these reporting requirements could make compliance impossible where there is no central point of control, which may have dire consequences for the decentralized use of digital assets. It could inadvertently push for centralization, introduce intermediaries where none previously existed, and render decentralized technology exceedingly challenging to access or develop in the United States.

In summary, the current form of the proposal threatens to severely impact the future of DeFi in the United States and underscores the far-reaching, catastrophic consequences that rule making can have on an evolving industry.

NoShill LIVE x2

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