BB DAILY 12-13-2024: French Hill’s crypto rules push, Riot’s $510M Bitcoin buy, Justin Sun’s BiT Global sues Coinbase, and landmark Bitcoin tax case unfold
French Hill prioritizes drafting digital asset regulations in 2025, while Riot Platforms strengthens its market position with a $510M Bitcoin acquisition. Meanwhile, Justin Sun’s BiT Global sues Coinbase over the delisting of wBTC amid the launch of rival cbBTC, and the first U.S. criminal tax evasion case centered on cryptocurrency sees a Satoshi-era investor sentenced for underreporting Bitcoin gains.
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Justin Sun
Bitcoin
Because Bitcoin
December 13, 2024
News
Justin Sun
Bitcoin
Drafting digital asset rules a top priority for House Financial Services Chair French Hill in 2025
French Hill, the newly-selected Chair of the House Financial Services Committee, plans to prioritize drafting a regulatory framework for digital assets within the first 100 days of 2025. Hill, who previously chaired the committee’s digital asset subcommittee, has been an advocate for clear crypto legislation, including bills on stablecoins and market structure. He criticized SEC Chair Gary Gensler’s enforcement-focused approach, emphasizing the need for innovation-friendly policies.
Hill’s leadership has garnered support from the crypto industry, including the DeFi Education Fund and the Blockchain Association. Meanwhile, the idea of a strategic bitcoin reserve is gaining traction, with both federal and state initiatives exploring its feasibility. Hill expressed caution about the concept, highlighting the need for careful evaluation.
Riot Platforms invests $510M to acquire 5,117 Bitcoins, strengthening its market position
Bitcoin mining firm Riot Platforms has acquired 5,117 Bitcoins for $510 million, signaling strong institutional confidence in the cryptocurrency. The purchase expands Riot’s holdings and reflects its strategy to enhance its presence in the evolving digital asset market. As Bitcoin adoption grows, the acquisition underscores the increasing role of institutional players in shaping the cryptocurrency industry.
Justin Sun’s BiT Global sues Coinbase over wBTC delisting amid launch of competing cbBTC token
BiT Global, led by Justin Sun and a key stakeholder in the wrapped Bitcoin (wBTC) ecosystem, is suing Coinbase following the exchange’s decision to delist wBTC by December 2024 while launching its own rival token, cbBTC. BiT Global alleges the move is anti-competitive and violates legal standards, claiming it damages their interests. Coinbase defended its decision, citing periodic reviews of its listing standards.
The lawsuit comes as wBTC maintains its position as the largest tokenized Bitcoin on Ethereum, with a market cap of over $13.4 billion, despite controversies surrounding Sun’s involvement. Meanwhile, cbBTC has grown rapidly, becoming the second-largest tokenized Bitcoin with a $2 billion market cap.
Satoshi-era Bitcoin investor sentenced to two years for $1M tax evasion in first crypto-focused U.S. case
Frank Richard Ahlgren III, a Texas Bitcoin investor from the Satoshi era, has been sentenced to two years in prison for underreporting over $3.7 million in Bitcoin gains between 2017 and 2019. The case marks the first U.S. criminal tax evasion prosecution centered solely on cryptocurrency.
Ahlgren, who used mixers and other techniques to obscure transactions, misrepresented gains to his accountant and inflated purchase prices to lower taxes. He was ordered to pay over $1 million in restitution and serve one year of supervised release. Authorities emphasized that cryptocurrency transactions are traceable and subject to tax laws.
