The new US administration continues to play nice with the crypto industry, the latest example being the decision to scrap a controversial tax rule. In protocol news, Cosmos is taking steps to improve interoperability with Ethereum, while Sam Altman’s World Network is reportedly in talks with Visa. Here are the week’s top crypto headlines.

Top performers

By percentage point change over the last 7 days.

Berachain              Up 3.37%
(BERA)
$6.93

Maker                     Up 2.88% 
(MKR)                
$1,289

Tron                        Up 1.87%
(TRX) 
$0.232

Bottom performers

By percentage point change over the last 7 days.

Axie Infinity     Down  16.77%
(AXS)
$2.90

Injective          Down  16.33% 
(INJ)
$8.74

Optimism         Down 16.33% 
(OP)
$0.746

Newsmakers

US to repeal controversial DeFi tax rule 

• The US Senate voted 70-28 in support of a resolution to scrap a rule that would have required decentralised finance platforms to collect and report taxpayer information, Decrypt reports.

• “Critics argued the rule was “fundamentally unworkable” because DeFi platforms operate through automated code on blockchains without human intervention or visibility into user identities,” according to the publication.

• “This is a crucial step towards protecting US innovation and ensuring that developers can continue to build cutting-edge technologies without the burden of unclear, overreaching regulations,” Amanda Tuminelli, Executive Director and Chief Legal Officer of DeFi Education Fund, told Decrypt.

What does this mean for crypto? 

This is the latest example of the US shifting its approach to crypto regulation, moving toward a more open and supportive environment rather than its previously aggressive stance. These regulatory decisions by US regulators are closely watched by their global counterparts and can impact global regulatory sentiment.

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Cosmos tests IBC protocol to boost interoperability with Ethereum 

• Interchain Labs tested an IBC transaction from Cosmos Hub to Ethereum, showing progress in interoperability between the two chains, The Block reports.

• ​The Inter-Blockchain Communication (IBC) protocol between the Cosmos Hub and Ethereum aims to enhance interoperability between the two networks.

What does this mean for crypto? 

If successful, this development could increase the utility and adoption of Cosmos. 

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Trump’s World Liberty Financial crypto venture to launch stablecoin

• Donald Trump’s World Liberty Financial will launch a dollar-pegged stablecoin, Reuters reports.

• The stablecoin, called USD1, will be fully backed by US Treasuries, dollars and other cash equivalents. Kevin Lehtiniitty, CEO of New York payments infrastructure firm Borderless.xyz commented, “While launching a stablecoin is easy, building an ecosystem that adopts it is a far harder task. Is the President competing with other American businesses or will they find ways to partner?”

What does this mean for crypto? 

The key question is how USD1 will integrate with both the crypto and broader financial ecosystems. Regardless of the outcome, the US President’s interest signals a significant endorsement for stablecoins and crypto.

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OpenAI co-founder’s crypto project in talks with Visa for stablecoin wallet

• ​Sam Altman’s cryptocurrency project, World Network, is reportedly in discussions with Visa to integrate card functionality into its self-custody crypto wallet, according to CoinDesk. Reportedly, this collaboration aims to enable World Wallet users to make stablecoin transactions with merchants within Visa’s extensive global network, effectively transforming the wallet into a “mini bank account” accessible to anyone. ​
  
  
• The proposed integration would allow users to perform a variety of financial operations, including foreign exchange transactions, fiat on and off-ramps, and crypto-based payments. Tools for Humanity, the company co-founded by Altman that oversees World Network, has reportedly sent requests for product proposals to card issuers to facilitate this integration. ​Neither Visa nor Tools for Humanity have officially commented on these discussions. ​

What does this mean for crypto? 

If true, these types of partnerships are testament to crypto’s utility and ongoing integration into traditional payment systems.

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