Illinois’ draft rules spell out how its 0.2% digital asset transaction tax would apply to stablecoins, DeFi platforms, crypto bridges and self-custody transfers. Illinois tax officials have published draft rules detailing how the state’s already-enacted 0.2% digital asset transaction tax would apply to stablecoins, decentralized finance (DeFi) platforms and other crypto activity. The new draft rules provide implementation details for the law, including which transactions and digital assets would fall within its scope. Under the proposal, stablecoins would be treated as digital assets subject to tax, while nonfungible tokens would be excluded. DeFi transactions would generally be exempt unless users pay fees considered “valuable consideration,” such as protocol fees collected for operating or maintaining a platform. Network fees and swap fees paid solely to liquidity providers would not trigger the tax. Read more
Kraken’s new xStocks vaults let investors earn yield on tokenized versions of Nvidia and major US stock market ETFs by lending the assets in DeFi markets. Crypto exchange Kraken has launched onchain yield vaults for select tokenized stocks and ETFs, allowing clients to earn returns by lending the assets through decentralized finance protocols, according to a Monday announcement. The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx) and Nvidia (NVDAx), with yield generated by lending the assets through onchain markets. Yield is paid in the deposited xStocks, while withdrawal requests are processed within three days. The vaults use the same infrastructure as Kraken DeFi Earn, which launched in January and has since attracted more than $800 million in deposits, according to the company. Read more
Why would anyone want to trade a healthcare stock for a memecoin like BONER? Why wouldn’t they, ask the degens on Robinhood Chain who are building a strange new corner of DeFi. The HIMS token is designed to track shares of the teleheath company Hims & Hers, which trade on the New York Stock Exchange (NYSE). On Robinhood Chain, traders can buy and sell the tokenized stock alongside other crypto assets like memecoins. And that’s what happened with BONER. The deliberately ridiculous memecoin was paired with HIMS in a liquidity pool, where traders could swap between the two tokens. Read more
The bill’s ethics section remained largely unchanged despite being one of the main points of contention ahead of a pivotal Senate vote. A revised version of the CLARITY Act would direct United States regulators to determine whether people or groups controlling “non-decentralized finance trading protocols” must comply with securities, commodities and anti-money laundering (AML) requirements. The revised text, posted on Senator Cynthia Lummis’ website, defines such a protocol as one whose functionality, operation, or rules can be materially altered by a person or coordinated group. The definition also covers protocols whose controllers can restrict users or whose transactions are not governed solely by transparent, pre-established code. Under the proposal, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would develop activity-based rules addressing registration, conduct, disclosure, recordkeeping and supervision. Meanwhile, the Treasury would establish how existing B...