February 8th, 2025

Kentucky joins growing list of US states to introduce Bitcoin reserve bill

Kentucky has become the 16th US state to introduce legislation aimed at establishing a Bitcoin reserve, highlighting the growing adoption of digital assets at the state level.

The bill, KY HB376, was introduced by Kentucky State Representative Theodore Joseph Roberts on Feb. 6. If passed, it would authorize the State Investment Commission to allocate up to 10% of excess state reserves into digital assets, including Bitcoin. It states:

“The total amount of excess cash invested under subsection (9)(k), (l), and (m) of this section shall not, at the time of the investment is made, exceed ten percent (10%) of the total amount of excess cash invested under subsection (9) of this section.”

While the bill doesn’t mention particular cryptocurrencies, its criteria refer to digital assets other than stablecoins with a market capitalization of over $750 billion, which is averaged over the previous calendar year.

Bitcoin is the only cryptocurrency to fall under this criteria with its $1.9 trillion market capitalization. In comparison, Ether’s $330 billion market cap would need to grow over twofold to qualify for the potential reserve.

Kentucky became the 16th state in the US to introduce legislation for a Bitcoin reserve, following Arizona, Alabama, Florida, Massachusets, Missouri, New Hampshire, North Dakota, South Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Kansas and Wyoming.

Kentucky’s move may set a precedent for a federal Bitcoin reserve

As the 16th state to consider such regulation, Kentucky’s move may set a precedent for a federal-level strategic Bitcoin reserve, according to Anndy Lian, author and intergovernmental blockchain expert.

“If Kentucky moves forward, it creates a roadmap for others to follow,” Lian told Cointelegraph, adding:

“The SEC, the Fed, and even Congress will have to grapple with how to classify Bitcoin in public reserves — is it a commodity? A security? Something entirely new? This could accelerate regulatory clarity, but it also risks creating a patchwork of state-level rules that complicate national policy.

“Let’s not forget the consumer protection angle: if Bitcoin’s volatility tanks, taxpayers could be on the hook, which raises serious governance questions,” he added.

Despite the volatility-related concerns, Kentucky’s bill is a “massive vote of confidence in Bitcoin,” which could inspire more adoption, Lian said, adding:

“It could drive institutional interest through the roof, pushing other states and even countries to consider similar moves. But adoption isn’t just about price; it’s about infrastructure. Kentucky will need robust custody solutions, cybersecurity measures, and a clear exit strategy if things go south.”

Kentucky’s bill comes a week after the state of Illinois announced plans for a Bitcoin reserve bill that proposed a minimum BTC holding strategy of five years.

Source: https://cointelegraph.com/news/kentucky-introduces-bitcoin-reserve-bill-as-16th-state-to-pursue-btc-reserves

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

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January 20th, 2025

US Crypto Transactions Face New Tax Reporting Rules

According to Cointelegraph, cryptocurrency transactions in the United States will soon be subject to third-party tax reporting requirements, marking a significant shift in regulatory oversight as digital asset valuations continue to rise. Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will be required to report sales and exchanges of digital assets, including cryptocurrencies, as per the final regulation published by the US Internal Revenue Service (IRS). This move is intended to assist investors in filing accurate tax returns related to digital asset transactions and to address potential noncompliance issues within the digital currency sector, according to an IRS report issued in June 2024.

Some investors view this regulatory change as an overreach, potentially driving more users towards decentralized trading platforms. Anndy Lian, an author and intergovernmental blockchain expert, highlighted the risk of users migrating to decentralized platforms like Uniswap or PancakeSwap. Lian noted that this shift could create a paradox where the IRS’s efforts to increase tax revenue might inadvertently push users towards environments where tax enforcement is currently challenging. Reflecting the crypto industry’s backlash, the Blockchain Association filed a lawsuit against the IRS in December 2024, arguing that the rules are unconstitutional as they include decentralized exchanges (DEXs) under the ‘broker’ term, thereby extending data collection requirements to them.

While crypto transactions on decentralized finance (DeFi) protocols are currently difficult for tax authorities to trace due to the absence of central intermediaries, advancements in blockchain analytics could make DeFi transactions more traceable by 2027, according to Lian. He suggested that while decentralized systems pose challenges for tax enforcement now, future developments in blockchain analytics and regulatory measures could alter this landscape. To prevent a potential exodus of users, Lian emphasized the need for specialized tax brackets that consider the high volatility and significant retail participation in the crypto market, arguing that treating crypto gains the same as traditional capital gains may not always be equitable.

The rising valuations of cryptocurrencies have also attracted the attention of other jurisdictions. European retail investors should prepare for taxation following the implementation of the Markets in Crypto-Assets (MiCA) framework, as noted by Dmitrij Radin, founder of Zekret and chief technology officer of Fideum, a regulatory and blockchain infrastructure firm. Radin stated that retail users will be required to provide information and data, which will be scrutinized, leading to increased taxation for most Europeans. MiCA, the world’s first comprehensive regulatory crypto framework, went into full effect for crypto-asset service providers on December 30.

Source: https://www.binance.com/en/square/post/01-16-2025-us-crypto-transactions-face-new-tax-reporting-rules-19018556510562

Anndy Lian

www.anndy.com

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January 18th, 2025

Decentralized Platforms May Benefit From Strict US Crypto Tax Laws

For the first time, cryptocurrency transactions in the United States will become subject to third-party tax reporting requirements. This reflects growing interest driven by rising digital asset valuations. The shift could also lead investors to decentralized platforms, as analysts say.

According to the final regulation published by the US Internal Revenue Service (IRS), centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies,

As per IRS report issued in June 2024, this decision aims to help investors “file accurate tax returns with respect to digital asset transactions,” and to address potential noncompliance in digital currency.

Anndy Lian, author and intergovernmental blockchain said, some investors may see this as an overreach, which could drive more users to decentralized trading platforms.

There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” Lian told Cointelegraph.

Swiss state-owned bank PostFinance launches ETH staking

A crypto-friendly retail bank, PostFinance, fully owned by the Swiss government, is offering Ether staking to its 2.7 million customers, who make up roughly a quarter of the Swiss population.

In a blog post on Jan 16, the bank said the service would offer investments using Ether

ETH $3,380.90 for a fixed minimum term of twelve weeks, with the opportunity to sell the credited staking rewards.

It comes as other traditional banks move into the crypto space. In December, Anchorage Digital became the first US federally chartered bank to support liquid Ether staking.

A minimum of 32 Ether is generally required to stake, worth roughly $106,000, according to CoinGecko. PostFinance says it will allow people to stake using 0.1 Ether, worth roughly $331.

Alexander Thoma, head of digital assets at PostFinance, said in a statement that the bank’s staking service will be based on native staking directly on the Ethereum blockchain.

He said, “The staking service is completely integrated into PostFinance’s existing services.”

“This means that customers can see their staking rewards directly in their asset statement, together with their other crypto assets,” Thoma added.