Issue #81

Regulation

1. IRS' proposed broker rule poses existential risk for the blockchain industry in the US  

-- IRS pursuing a broad definition of 'broker' and imposing stringent reporting requirements

-- IRS received 120k comments to sift through

2. OECD's Crypto-Asset Reporting Framework (CARF) added to the organization's Common Reporting Standard (CRS)

-- 48 countries have committed to implementing the framework beginning 2027 to resolve crypto tax evasion at an international scale

3. Crypto(.com) and Hex Trust win digital asset licenses in Dubai

4. IOSCO, the global standards setter for securities markets regulation, publishes recommendations for regulating crypto

-- Recommends greater accountability for financial influencers and disclosure of commercial arrangements with crypto asset service providers

5. NY watchdog releases new guidance for crypto firms

-- Requiring crypto firms to get their coin-listing policy approved by the regulator before listing a coin

-- Guidance also stipulates that firms must discontinue support of any listed coin identified as presenting newly elevated risk

6. Australia updates its capital gains tax guidance to include wrapped tokens and DeFi

Infrastructure

1. Former Polygon Labs President Ryan Watt joins Optimism as Chief Growth Officer

2. Crypto exchange OKX plans launch of X1, a L2 built using Polygon's CDK

-- As a reminder, Coinbase has already launched its L2 (Base) and Kraken announced plans to develop its L2 last week

3. Infura launches early access program for Decent in step towards decentralization

-- Decent is a decentralized network of node infrastructure-as-a-service providers

-- Microsoft and Tencent have already joined the network

4. Jump Trading makes cross-chain protocol Wormhole a separate business

5. dYdX Chain enters beta Mainnet stage

Finance

1. Fidelity files for spot Ethereum ETF

2. Cboe Digital will list margined bitcoin and ether futures starting Jan 11

-- For reference, Cboe Digital is the the crypto arm of the Chicago Board of Options Exchange

3. Singapore-based crypto lender Hodlnaut to be liquidated after suffering $189M in losses due to Terra exposure

4. Standard Chartered launches RWA tokenization platform Libeara

-- Partnered with FundBridge Capital to create a tokenized Singapore-dollar government bond fund for accredited investors

5. DeFi protocol Sushi is expanding to L1 blockchain ZetaChain to add support for bitcoin

6. Republic Crypto announces launch of revenue-sharing tokenized security, R/Note

-- Investors in R/Note earn dividends from Republic’s venture portfolio

-- The pre-sale of the asset has attracted $30M+ from individual investors and institutions

7. Key departures from crypto exchanges this week

-- Nana Murugesan, VP of International and Business Development at Coinbase

-- Jennifer Hicks, Binance's Senior Counter-Terrorism official

8. Binance partners with Gulf Energy Development to launch a crypto exchange in Thailand

-- Exchange has been approved by the Thai SEC

9. Coinbases releases open source on-chain payment protocol

-- Allows merchants to accept crypto payments

10. Anchorage Digital announces new offerings for registered investment advisors

-- Providing solutions for custody and trading separately managed accounts

Consumer

1. Disney enters licensing agreement with Dapper Labs, terms and conditions unknown

2. Lens Protocol releases v2 upgrades

-- New features include: multi-sig managed profiles, tipping on "smart posts," profile manager, handles, and "pay to read the rest" monetization

3. Kyle Killen, writer-producer for the TV-adaption of the “Halo” video game, is the 'story architect' behind StoryCo's first project “The Disco Ball”

4. PancakeSwap releases web3 gaming portal

-- 3rd party game developers allowed to publish games on portal

5. Paxos to launch a USD-backed stablecoin in Singapore

-- Has received in-principle approval from the Monetary Authority of Singapore

Security

1. Stablecoin Raft depegs after suffering from $3.3M exploit

-- Paused stablecoin minting in response

2. Hacker steals $27M from Binance's (smart contract) deployer wallet

Research

1. Bitcoin researcher Robin Linus proposes decentralized file hosting system, BitStream

-- A server encrypts client files and a bond contract guarantees the client receives their exact file or they can punish the server

-- Compatible payment methods include Lightning, Ecash, and every other system that supports hash-timelock contracts

2. Vitalik Buterin still has faith in Plasma (source)

-- Plasma is a scaling framework that bundles transactions together off of Ethereum and segments them into "child chains"

3. Converting transformers to polynomial form for secure inference over homomorphic encryption (source)

-- Problem: incorporating homomorphic encryption into transformer models has been challenging because of the difficulties in converting these models into a polynomial form

-- Solution: a polynomial transformer that leverages a novel method for converting operators to their polynomial equivalent

4. Formal verification of zero-knowledge circuits (source)

5. The impact of adversarial node placement in decentralized federated learning networks (source)

-- Conclusion: the effect of adversarial node placement on attack potency in federated learning depends on a variety of elements, including network type, data distribution, connectivity, size, and the timing of the attack

6. Balancing blockchain privacy and regulatory compliance using selective de-anonymization (source)

-- Allows privacy-preserving applications on blockchains to de-anonymize illicit transactions via recursive traversal of subgraphs of linked transactions

-- Control of de-anonymization decisions can be distributed among multiple entities

7. A compiler that generates efficient vectorized homomorphic encryption programs (source)

8. Trusted timestamps in untrusted environments (source)

-- Problem: despite trusted execution environments providing multiple security functionalities, timestamps from the operating system are not covered; some services require time for validating permissions or ordering events

-- Solution: provides trusted timestamps by leveraging mutually supportive enclave-based clock servers

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