The Biggest Stories of the Day.
1. Two US Senators have proposed legislation that would make small crypto
Republican Sen. Patrick Toomey (R-Pa.) joined with Democratic Sen. Kyrsten Sinema
(D-Ariz.) to introduce the “Virtual Currency Tax Fairness Act” - which would exempt the US
crypto users from reporting on transactions where they spend less than $50 - or on any
trade in which they earn less than $50.
Senator Toomey said of the new legislation,
“While digital currencies have the potential to become an ordinary part of
Americans’ everyday lives, our current tax code stands in the way. [This bill will
let people] use cryptocurrencies more easily as an everyday payment method by exempting small personal transactions like buying a cup of coffee from taxes
by exempting from taxes small personal transactions like buying a cup of coffee.”
You may be wondering - how is it that the current tax code is “standing in the way”?
According to the Internal Revenue Services’ (IRS) website, which states
“When you sell virtual currency, you must recognize any capital gain or loss on
Having to report a capital gain or loss on every virtual currency transaction - no matter
how big or small - makes it less ideal as an everyday means of payment compared to
cash. This legislation would change that.
The executive director of Coin Center, Jerry Brito, says of the newly proposed bill,
“This would foster the use of crypto for retail payments, subscription services, and
microtransactions. More importantly, it would foster the development of
decentralized blockchain infrastructure generally…”
There’s no telling when exactly the new legislation will be voted on. The US Congress is
on the verge of a lengthy August recess in the leadup to the upcoming midterm
2. Chipotle launched a new interactive game called “Buy the Dip”.
The “fast casual” Mexican food chain is giving away $200,000 in free crypto prizes as
part of a week-long promotional campaign aimed at onboarding Chipotle fans into
Chris Brandt, the Chief Marketing Officer at Chipotle said,
"We want to build the next generation of Chipotle fandom by connecting with the
Web3 community. We're excited to bring positivity to the crypto conversation by
empowering fans to 'Buy The Dip."
‘Buying the dip’ - while it may make you think about a dipping sauce for your burrito - is
actually a reference to the recent ‘dip’ in market prices, which has created a discounted
buying opportunity for many speculative crypto investors.
As per the official press release, more than 500 lucky players will win crypto as part of
the “Buy the Dip” campaign.
The campaign officially starts on Monday, July 25th, and will be active through Sunday,
Fans can access the "Buy The Dip" game by visiting: www.chipotlebuythedip.xyz.
3. Professional football club AC Milan is joining the metaverse.
The Italian football club announced its partnership with Sorare (pronounced ‘so-rare’) -
the NFT Fantasy Football Gaming platform.
Starting in the 2022-23 season, Sorare users will be able to collect, trade, and play with
officially licensed digital cards from AC Milan.
The multi-year partnership gives AC Milan a new tool for connecting with its 500 million
supporters worldwide. It also creates a new revenue stream through the selling of
officially licensed NFTs.
Casper Stylsvig, Chief Revenue Officer of AC Milan, commented:
“Today marks the beginning of a new journey with an exciting and young brand
that is at the forefront of the NFT revolution and that has been able to merge
digital collectibles and fantasy sports.”
Since being founded in 2018, Sorare has reached over 2 million users and partnered
with 260 sports organizations.
Michael Meltzer, Head of Business Development of Sorare added:
"We’re proud to partner with the legendary AC Milan to help them connect with
fans globally through the future of football collectibles".
The 2022–23 season will be the 124th season in the existence of A.C. Milan and the
club's 89th season in the top flight of Italian football.
4. The SEC is probing Coinbase for allegedly allowing U.S. customers to trade
The crypto exchange company Coinbase has come under increased scrutiny from the
US Securities and Exchange Commission (SEC) as of late.
This is according to two sources, who asked to remain anonymous because the inquiry
into Coinbase hasn’t been publicly disclosed.
The sources say the SEC has increased its scrutiny of Coinbase since the platform
expanded the number of tokens in which it offers for trading.
In a recent court filing - the SEC accused a former Coinbase employee of violating
insider-trading laws by leaking information, and purchasing tokens just before they
launched on the platform.
While the report alleged no wrong-doing on behalf of Coinbase - the SEC noted that 9
of the tokens purchased by the defendant were in fact ‘securities’.
Coinbase Chief Legal Officer Paul Grewal took to Twitter saying:
“We are confident that our rigorous diligence process -- a process the SEC has
already reviewed -- keeps securities off our platform, and we look forward to
engaging with the SEC on the matter”
Coinbase lists over 150 tokens on its US trading platform. None of which are currently
registered with the SEC as securities.
The company’s shares have dropped 20% since the speculative news was announced.