Major Developments in the World of Crypto: Bitcoin Halving, IRS Reporting Form, and Lawsuit Settlement
In the world of cryptocurrency, major developments have been unfolding, with Bitcoin users spending a record $2.4 million in fees to secure space on the 840,000th block, marking the fourth-ever Bitcoin halving event. This event, triggered by Bitcoin miner ViaBTC producing the block, led to a reduction in miner rewards by 50%, from 6.25 BTC to 3.125 BTC per block.
Block 840,000 quickly became the most sought-after piece of digital real estate in Bitcoin’s history, with users spending a total of 37.67 BTC on fees. This surge in activity was attributed to users rushing to record and carve rare satoshis on the halving block, coinciding with the launch of Casey Rodmarmor’s new Runes Protocol. This protocol, similar to BRC-20s, leverages the Bitcoin network to create new tokens and pay fees in Bitcoin.
Following the halving, a total of $3.82 million in fees, excluding miner subsidies, was spent on the five blocks that followed, as Bitcoin mining pools competed to mine the first “epic” satoshi. Amidst the chaos, pseudonymous trader Hsaka posted a meme capturing the sentiment towards the halving event – a brief moment of celebration followed by an immediate return to business as usual.
In other news, the United States Internal Revenue Service (IRS) has released a draft of its new Form 1099-DA for reporting income from digital asset transactions. This form is expected to come into use in 2025 and will require brokers to report on digital asset proceeds from broker transactions, including cryptocurrencies, nonfungible tokens, and stablecoins. The crypto community has weighed in on the proposed reporting requirements, with concerns raised about the administrative burden it may place on brokers and taxpayers.
Additionally, a group of cryptocurrency users has reached a settlement with former FTX CEO Sam Bankman-Fried as part of a class-action lawsuit filed in Florida. The plaintiffs have agreed to drop the lawsuit against Bankman-Fried and instead pursue FTX influencers, using information presented at his criminal trial to aid in their case. This development comes after Bankman-Fried was sentenced to 25 years for felony charges, with his lawyers filing notice to appeal the conviction and sentence.
These recent developments in the world of crypto highlight the evolving landscape and the challenges and opportunities that come with it. Stay tuned for more updates as the industry continues to grow and innovate.
