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Here’s What Happened in the Cryptocurrency Industry Today — TradingView News
A bipartisan bill proposed by two members of Congress could change the way crypto networks are taxed. Ethereum recovery protocol EigenLayer is facing a huge backlog of withdrawal requests after the EIGEN airdrop. Meanwhile, BlackRock’s tokenized treasury fund, which opened six weeks ago, is now the largest in the world.
The proposed US law would not allow bulk premiums to be taxed at the time of acquisition
U.S. Reps. Drew Ferguson and Wiley Nickel, a Republican from Georgia and a Democrat from North Carolina, respectively, have proposed a new bill that would require block rewards from proof-of-work and proof-of-stake networks to be taxed when sold rather than when acquired.
Dubbed the “Providing Tax Clarity for Digital Assets Act,” the new legislation would declare staking rewards as “created property” under the U.S. tax code, and taxes on block rewards would be collected at the time of acquisition.
Nickel called the current rules “overly complex,” in a statement, adding that they lead to “investor confusion, double taxation and American businesses moving overseas.”
EigenLayer sees over 12,000 withdrawals in the queue
EigenLayer, Ethereum’s largest restake protocol, has received over 12,412 withdrawal requests following widespread disappointment over the planned EIGEN airdrop.
Mass withdrawal requests began on April 29, when EigenLayer recorded over 4,336 daily withdrawals, rising to 6,496 on April 30, according to Dune data.
While it is not yet possible to trace the size of individual withdrawals, the 11.6% of withdrawals in the queue would reduce EigenLayer’s current total value locked (TVL) of $14.8 billion to just over $13 billion of dollars.
According to Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero, the ban of major economic jurisdictions from the EigenLayer airdrop has caused widespread disappointment that will affect the protocol’s TVL.
BlackRock’s BUIDL is now the largest tokenized treasury fund
BlackRock’s USD Institutional Digital Liquidity Fund, called BUIDL, is now the largest tokenized treasury fund on blockchain.
BUIDL reached a market capitalization of $375 million on April 30 and beat the 12-month Franklin OnChain US Government Money Fund (BENJI), which has $368 million, according to Dune Analytics.Cointelegraph
BUIDL has raked in $70 million in the last week – just $50 million from real asset tokenization firm Ondo Finance’s OUSG token. In the same period, however, BENJI’s assets under management decreased by approximately 3.7%.
There are currently over $1.2 billion worth of US Treasury securities on Ethereum, Polygon, Solana and other blockchains.
Additional reporting by Geraint Price, Ana Paula Pereira, Sam Bourgi and Felix Ng.