Blockchain Bites: Crypto Tax Switcheroo, Stablecoin Confusion, the Post-Capitalist Plunge

Fintech giant Plaid has quietly added support for two DeFi applications, the IRS wants to know about your crypto holdings and data shows the total value of stablecoins has surpassed the $20 billion milestone.

Plaid <3 DeFi
Visa-owned fintech company Plaid, which connects traditional bank accounts to thousands of digital platforms has quietly added support for Dharma’s DeFi wallet and Teller Finance, a DeFi startup bringing unsecured lending to the Ethereum blockchain. CoinDesk’s Ian Allison got the scoop that Plaid’s head of UK, Keith Grose, is a believer in decentralized and open applications, even if it’s a cynical attempt for fintech to manage its own disruption. “I think it’s still a long way before DeFi becomes part of the main route for finance, but it’s a really exciting corner and one that personally I’m passionate about,” Grose told Allison. “We’re only scratching the surface…”

Tax policies
The U.S. Internal Revenue Service (IRS) is reportedly repositioning a question about crypto transactions that will make it harder for taxpayers to avoid declaring their holdings. According to a Wall Street Journal report Friday, the IRS is updating the 1040 income tax form for 2020 to require that all returnees check a box if they have transacted any crypto assets over the year – placing the question at the top of the document, rather than buried further down, the WSJ says. A law expert told the WSJ that the question would make it easier for the IRS to win cases if the taxpayer checks the “no” box and is later found to have held crypto. Half a world away, four Knesset members are seeking to ease Israel’s 25% capital gains tax on cryptocurrencies through draft legislation.

Bipartisan appeal
A new bipartisan-backed bill aims to clarify investment contract assets or digital tokens sold as part of a securities offering are separate and distinct commodities, not securities, CoinDesk’s Sandali Handagama reports. Introduced by…

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