The EU’s new crypto tax regime, DAC8, focuses on enforceable targets, excluding DeFi for now. Custodians and exchanges will collect and report standardized user activity data under the OECD’s CARF. But DeFi may not be exempt for long as tax authorities may classify DeFi platforms as virtual asset service providers. Jurisdictions set for CARF exchanges in 2027.
Animoca Brands Japan partners with RootstockLabs to introduce Bitcoin DeFi tools to Japanese corporations for treasury management. The collaboration localizes Rootstock’s program for Japan, allowing companies to manage Bitcoin holdings and access financial tools on the Rootstock network. Japanese companies show interest in using Bitcoin as a treasury asset.
US senators consider amendments to the DCIA bill, focusing on clarifying regulatory roles between the CFTC and SEC. DeFi is a contested area in the bill, sparking concerns among lawmakers and industry groups. The debate reflects the ongoing struggle to address DeFi in US market structure discussions after years of delay.
DePIN, a $10 billion sector, shows resilience despite token slump according to Messari. Leading networks generate $72 million in onchain revenue. DePIN’s infrastructure model prioritizes usage and cash flow over token performance, leading to increased revenue resilience compared to DeFi and layer-1 networks during the current downturn.
Citrea’s ZK-rollup launch introduces BTC-backed lending, structured products, and a US dollar stablecoin, ctUSD. The project aims to activate idle BTC liquidity onchain while anchoring proofs and data availability to Bitcoin’s base layer. The launch reignites the debate on Bitcoin’s block space capacity and complexity support for DeFi activities.
In the DeFi market overview, most of the top 100 cryptocurrencies ended the week in the red. Yei Finance (CLO) token saw a 58% drop, followed by Seeker (SKR) with a 55% decrease. Total value locked in DeFi remains a key metric for tracking sector growth and activity. Stay tuned for more DeFi updates next week.
Read more at Cointelegraph: DeFi Stays Outside Rules as Regulators Tighten Elsewhere