KEYTAKEAWAYS
- Cathie Wood of Ark Invest voices support for Donald Trump, citing strong economic management pre-COVID-19.
- Andreessen Horowitz critiques IRS draft form 1099-DA for its high compliance costs and privacy risks.
- Major cryptocurrency projects to unlock tokens worth $188 million, impacting market dynamics.
CONTENT
In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.
ARK INVEST CEO ENDORSES TRUMP FOR U.S. ECONOMY
Cathie Wood, CEO of Ark Invest, announced her plan to vote for former U.S. President and Republican candidate Donald Trump in the upcoming presidential election. Wood stated, “As an electorate concerned about economic issues, my choice is Trump.” She praised Trump’s administration for facilitating what she described as “the best three years in the history of the U.S. economy” prior to the COVID-19 pandemic outbreak. A long-time supporter of cryptocurrencies, Wood also noted Trump’s recent robust endorsement of the cryptocurrency industry.
A16Z SUBMITS FEEDBACK ON IRS CRYPTOCURRENCY TAX DRAFT
Venture capital firm Andreessen Horowitz (a16z) has submitted detailed feedback to the IRS concerning the draft form 1099-DA for cryptocurrency taxation:
- Excessive Reporting Burdens: a16z points out the unnecessary burden caused by requiring multiple brokers to submit a 1099-DA form for each digital asset transaction.
- Privacy Concerns: The firm criticizes the requirement to report wallet addresses, labeling it as unnecessary and a significant risk to taxpayer privacy.
- High Compliance Costs: a16z argues that the costs associated with meeting the form’s information requirements are excessively high and often impractical.
- Phased Implementation: The firm suggests a phased approach to the implementation of these reporting requirements to mitigate potential issues.
- Exclusion Recommendations: a16z recommends removing non-custodial wallets and digital asset payment processors from the “broker” category in the 1099-DA form.
- Stablecoin and Non-Exchangeable Tokens Reporting: The firm advises against requiring the reporting of fiat-backed stablecoins and most non-exchangeable tokens disposals under this form. Instead, they propose a minimum threshold for transaction reporting to simplify compliance.
UPCOMING MAJOR TOKEN UNLOCKS
According to Token Unlocks data, the upcoming week will see token unlocks worth $188 million across mainstream cryptocurrency projects. Significant one-time unlocks include:
- AltLayer will unlock 105 million ALT tokens on June 25 at 10:00 AM UTC, representing 6.92% of its circulating supply, valued at approximately $19.88 million.
- Yield Guild Games is set to unlock 16.69 million YGG tokens on June 27 at 2:00 PM UTC, accounting for 4.48% of its circulating supply, with an approximate value of $10.65 million.
- SingularityNET will unlock 8.57 million AGIX tokens on June 28 at 12:00 AM UTC, making up 0.67% of its circulating supply, worth about $5.30 million.
- Optimism plans to unlock 31.34 million OP tokens on June 30 at 12:00 AM UTC, representing 2.88% of its circulating supply, valued at roughly $56.10 million.
- Ethena Labs is scheduled to unlock 14.89 million ENA tokens on June 30 at 7:00 AM UTC, which is 0.87% of its circulating supply, approximately valued at $8.96 million.
- Sui will unlock 64.19 million SUI tokens on July 1 at 12:00 AM UTC, accounting for 2.65% of its circulating supply, with an estimated value of $57.15 million.
