Morning Minute: The White Home and IRS Goal International Crypto Holdings – Decrypt

Morning Minute is a day by day publication written by Tyler Warner. The evaluation and opinions expressed are his personal and don’t essentially replicate these of Decrypt. Subscribe to the Morning Minute on Substack.

GM!

At the moment’s prime information:

• Crypto majors chop forward of NVDA earnings at this time; Bitcoin at $91,400
• Kraken raises $800M at $20B valuation led by Citadel
• Ethereum Basis unveils “Interop Layer” the place L2s perform as 1 chain
• Constancy launched its Solana ETF; SOL ETFs see most inflows since Nov 6
• MegaETH teases its mainnet beta will go stay early December

🇺🇸 The IRS Targets International Crypto

The Trump White Home has been definitively optimistic on crypto and its want for regulation within the U.S.

And now we’re seeing one of many first main impacts, in an enormous crackdown.

📌 What Occurred

The White Home is reviewing a brand new IRS proposal that may require Individuals to report and pay taxes on international crypto accounts.

The proposal contains guidelines modeled after FBAR and FATCA, the identical frameworks used for offshore financial institution accounts.

This comes after Treasury pushed new reporting obligations for “digital asset accounts” held overseas, however the definition of international account is deliberately broad. It might embrace:

• offshore centralized exchanges
• international custodians
• international brokers that listing tokenized belongings
• doubtlessly even sure pockets suppliers with offshore company entities

The proposal is advanced, however the core concept is straightforward: in case you’re a U.S. taxpayer and also you maintain crypto with any international entity, the IRS desires visibility and reporting.

🗣️ What Are They Saying

“Implementing CARF would discourage U.S. taxpayers from transferring their digital belongings to offshore digital asset exchanges. Implementing CARF would promote the expansion and use of digital belongings in the USA and alleviate considerations that the shortage of a reporting program might drawback the USA or U.S. digital asset exchanges.” – earlier White Home assertion

🧠 Why It Issues

Is that this an enormous change?

Nicely, it is dependent upon whether or not you’ve been paying your crypto taxes.

There are seemingly 4 cohorts of crypto taxpayers within the US:

• Those that pay all the pieces on-chain and thru DEXs to allow them to sleep at evening
• Those that solely pay tax on what will get off-ramped (the CEX tax)
• Those that don’t pay tax in any respect and threat it
• Those that don’t have any beneficial properties to pay taxes on

So this variation actually solely impacts cohort #2 above.

For many who have been enjoying by the guide, taxes are at all times reported and paid on all transactions. However now, those that have been skirting some guidelines might should re-evaluate their framework.

The rationale from the White Home is smart right here. If they need crypto to develop in America, in addition they need it held in America (self-custodied or through centralized exchanges like Coinbase). It’s simpler to trace and regulate this fashion.

So closing the international loopholes is smart, regardless that that is one unlikely to drive an enormous uptick in tax income. It’s extra in regards to the spirit of the assertion.

America is open for enterprise for crypto in 2025—so maintain your crypto onshore.

🌎 Macro Crypto and Memes

Just a few Crypto and Web3 headlines that caught my eye:

• Crypto majors are barely inexperienced forward of a significant NVDA earnings name tonight; BTC even at $91,300; ETH +2% at $3,090, BNB +1% at $922, SOL +1% at $139
• MYX (+38%), STRK (+30%) and ZEC (+10%) led prime movers
• Bitcoin’s newest 30% drawdown occurred way more quickly (42 days) than the prior 2 from Summer time 2024 (147 days) and April 2025 (77 days)
• Kraken raised $800M at $20B valuation, led by Jane Road, DRW, Oppenheimer and a $200M Citadel stake
• The Ethereum Basis outlined objectives for its upcoming Interop Layer which goals to unify all EVM L2s and make them “really feel like one chain”
• The OCC mentioned nationwide banks might maintain and spend crypto in particular circumstances (i.e. to pay for gasoline), for testing purposes, and extra
• New Hampshire launched the primary Bitcoin-backed municipal bond
• Mt. Gox moved 10,608 BTC (practically $1B) from a chilly pockets to new addresses, renewing expectations that creditor repayments could possibly be imminent
• Tether made a strategic funding in Ledn to develop bitcoin-backed lending

In Company Treasuries / ETFs

In Memes / On-chain Movers

• Meme coin leaders are principally flat; DOGE +1%, Shiba -1%, PEPE -1%, PENGU -1%, BONK -1%, TRUMP +1%, SPX +10%, and FARTCOIN even
• A Hawk Tuah meme coin lawsuit added Haliey “Hawk Tuah” Welch as a defendant, alleging misleading promotion
• The 67 meme coin ran to $40M and a brand new excessive; Bullish +125% and GIGA +38% different notable movers
• EDEL jumped 45% to $78M FDV because it tokenized shares infra protocol takes off

💰 Token, Airdrop & Protocol Tracker

Right here’s a rundown of main token, protocol and airdrop information from the day:

• MegaETH “Frontier” goes stay early December because the official launch of its mainnet beta
• Phantom launched Phantom Terminal, with new charts, real-time information, and quick execution
• Myriad built-in the Walrus information layer enabling all market photographs and information to stay immutably on-chain
• Obex raised $37M to incubate RWA-backed stablecoins
• Solomon Labs raised $102M in its Metadao presale, a number of multiples above its objective, opening at $0.8 and a $20M FDV; 92% of funds had been refunded
• PVP introduced an acquisition of Hyperdash, touted because the main analytics platform on Hyperliquid

🚚 What is occurring in NFTs?

Right here is the listing of different notable headlines from the day in NFTs:

• NFT leaders had been barely inexperienced; CryptoPunks +2% at 30.5 ETH, Pudgy even at 5.15, BAYC +2% at 6.14 ETH; Hypurr’s -5% at 724 HYPE
• A ripcache 1/1 ‘relic_01‘ offered for $125,000
• OpenSea revealed its Wave 2 treasure chests as rewards for its farming program