The Breakdown First Five - Wednesday, January 17, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. IRS Guidance on 6050I 

The IRS has finally provided guidance on 6050I reporting requirements, which would have seen crypto businesses reporting transactions of $10,000 or more. The tax agency said that no reporting is required until regulations are in place and forms updates, with no timeline on the rulemaking process. The crypto community will have an opportunity for public comment, which will no doubt be harsh on the unworkable reporting measures.

4. Terraform Delayed 

The judge presiding over the SEC v Terraform case has delayed trial until late March. Terraform represented that Do Kwon would be extradited to the US by then, despite continuous appeals causing delays. The judge appeared skeptical that Kwon would show up, but indulged the delay request noting that “there is no absolute guarantee that he will be released in time.” He was clear the trial would start in March and would not be postponed any further. 

3. Core Scientific Emerges from Bankruptcy

Core Scientific, the one time largest Bitcoin miner in the world has emerged from bankruptcy with an approved restructuring plan. Current equity holders will be granted a 60% stake in the new company and the plan envisions full repayment to creditors. Shares are expected to be relisted by the end of January. The firm hopes to return to the top of the pecking order, with plans to hit $1B in revenue by 2027. 

2. Circle Pitches Davos

Circle brought a whole crew to Davos in order to pitch their stablecoin to the global elite. Speaking with CNBC, CEO Jeremy Allaire said there is a “very good chance” of congress passing stablecoin legislation this year. With an IPO in the works, Circle is positioning themselves as a “trusted, transparent, well regulated company.” The opening shots in the 2024 stablecoin war have been fired.  

1. Cantor: Tether Has the Money

On the mountainside at Davos, Cantor Fitzgerald CEO Howard Lutnik weighed in on Tether conspiracies. “They have the money.” This isn’t the first time Lutnik has backed Tether, but it’s by far the most public. Cantor manages Tether’s stash of US treasury reserves. The firm is a big player in Wall Street, and now it’s CEO has pinned his reputation on Tether. 

Thanks for reading -NLW