Cryptocurrency this week has seen a number of eventful moments, not least because of that Super Bowl ad! Here are some of the key stories in the crypto world this week:
US Treasury Suggests Miners Won’t Be Subject to IRS Reporting Rules
On Friday, the US Treasury Department sent a letter to a group of senators signaling that crypto miners and stakers will not face any tax reporting obligations. This was in direct response to concerns from the industry that the Infrastructure Investment in Jobs Act last year would impose extra tax reporting burdens on crypto miners because of the broader definition of what was classed as a “broker.” The letter, written by Jonathan Davidson, an assistant Treasury secretary for legislative affairs, has sparked a wider conversation. Davidson added that the Treasury Department is going to issue proposed regulations on how it defines a “broker,” hopefully starting the rise of more miners who were concerned about being unfairly penalized.
Intel’s Crypto Chip Is Designed To Be Energy-Efficient
Intel is playing to release so-called “blockchain accelerators” later in 2022 with a new chip purely focused on the act of mining cryptocurrency. The blockchain accelerator circuits are aiming to produce 1000 x better performance per watt than mainstream GPUs for SHA-256 based mining. With a focus on sustainability, the chip has already been pre-ordered by some, including Block (owned by former Twitter CEO Jack Dorsey). Because of the environmental impact of cryptocurrency mining, the chip is a big step in making mining a greener practice for everyone.
Coinbase’s Super Bowl Ad Making Headlines (and Crashing its Site)
Cryptocurrency and Coinbase had a massive boost in popularity thanks to a certain commercial aired during the Super Bowl. A QR code bouncing around the screen where, when scanned, took users to an offer for $15 in free Bitcoin for signing up, was in stark contrast to the glitz and glamor of every other Super Bowl commercial. But the gamble paid off, the Coinbase app jumped from 186th place to number 2 in the App Store in the space of one day and quickly crashed the Coinbase website. Coinbase spent approximately $13 million on a 60-second commercial immediately setting cryptocurrency apart with its minimalist ad and simple message.
Crypto and South Korea's Next Election
Another sign of cryptocurrency as a massive force in the modern world; all of South Korea’s presidential candidates have made the announcement that, in order to win over young voters who have invested in cryptocurrency as a means to get by, have pledged to bring back crypto companies to South Korea. With the ban on initial coin offerings being set up in 2017, resulting in cryptocurrencies moving to other jurisdictions, there is talk of a new wave of policies to bring cryptocurrency companies back to South Korea. With strict regulation on crypto investments and a supposed 14 crypto-related bills in circulation, anticipation is high for the major changes in cryptocurrency in South Korea after the election on March 9.
