IRS updates draft of crypto reporting form for US taxpayers

Sam “SBF” Bankman-Fried, the disgraced co-founder of collapsed cryptocurrency exchange FTX, to a low-security US federal correctional institutionBankman-Fried was moved to the low-security Terminal Island federal correctional institution. Previously, he was located at the Victorville medium-security facility, a notoriously violent place, according to prison consultant firm Elizabeth Franklin-Best.Samuel Goldfaden, a partner at the crypto-centric lawfirm, DLT Law told Cointelegraph that while his previous facility was violent, BankmanFried had been held in a safer part of the facility, adding:“Sam Bankman-Fried spent most of his detention in the more secure dorm units of MDC Brooklyn, reportedly alongside other high-profile inmates such as Sean P. Diddy to ensure his safety.“Terminal Island FCI review. Source: Elizabeth Franklin-BestIn “good” companyTerminal Island is located in San Pedro, California and houses involved in financial crime. According to Franklin, notable inmates at the facility include ormer stockbroker Anthony Elgindy (wire fraud, racketeering, securities fraud and extortion) and internet music entrepreneur Mouli Cohen (wire fraud, money laundering and tax evasionNew York ttorney Aaron Brogan told Cointelegraph that Bankman-Fried’s “non-violent record may well have been incorporated into a risk score” which led him to this low-security facility. His alleged autism, on the other hand, was unlikely to have had an influence despite layers playing it as a card:“I’ve heard reports that describe Sam as autistic, but that is within a particular subclinical contemporary lens — autism can be a debilitating condition, but Sam graduated from MIT, founded multiple billion-dollar companies, and successfully defrauded millions of people.“Goldfaden suggested a tie between Bankman-Fried’s interview with political commentator Tucker Carlson, which was not approved by prison authorities and followed by solitary confinement. He highlighted that shortly after the interview,“was transferred, to improved conditions and moved closer to his family.A win for the FTX co-founderBrogan pointed out that lower security facilities are usually “nicer” and said that as a result he is less likely to become a victim of violent crime. will probably have a “slightly easier” time communicating with his attorneys.Still, Brogan said that those are suppositions that are likely to be true, but not guaranteed and the change may be negative for Bankman-Fried instead:“It is hard to say from the outside, but generally one would expect lower security prisons to make such communication less challenging.“The timeline of the FTX co-founder’s appeal will not be affected by the move, his pardon-seeking. The move also raises questions about the markedly different safety and rehabilitation environments that inmates guilty of non-violent offences find themselves in.Still, Brogan said that is “the nature of the United States prison system.” He highlighted that “the prison system treats all inmates unfairly, and almost nobody cares.” He :“This is a punishment and the mass of people want it to be hard. There is some threshold of human decency, but nothing that has happened to Sam approaches that.“

Polygon Labs CEO Marc Boiron called for a fundamental shift in how decentralized finance (DeFi) protocols manage liquidity, labeling the sector’s ongoing liquidity crisis as “self-inflicted.” In an exclusive interview, Boiron outlined Polygon’s vision for sustainable DeFi, emphasizing chain-owned liquidity and transparent economic models as the path forward.Boiron criticized DeFi protocols for fueling a cycle of “mercenary capital” by offering sky-high annual percentage yields (APYs) through token emissions. “It’s just renting liquidity; it’s not real loyalty,” he told Cointelegraph, noting that such strategies lead to fleeting liquidity that vanishes when yields drop or token prices falter. This reliance on short-term hype, he argued, undermines the sector’s stability and deters institutional adoption.Chasing DeFi stability over hypeTo break that cycle, Boiron urged protocols to prioritize fundamentals over flashy returns. “Sustainable DeFi needs models where liquidity sticks around for the right reasons,” he said, pointing to Polygon’s POL token as a blueprint for achieving this.“Protocols can put their treasury to work, earning yield instead of diluting token value. Over time, this strengthens the treasury rather than just paying off temporary liquidity providers.”Polygon’s approach centers on chain-owned liquidity, where protocols build treasuries to directly own liquidity positions rather than relying on external providers. Unlike token emissions, which Boiron said attract liquidity quickly but dilute token value, owned liquidity offers long-term stability and capital efficiency.The only trade-off in the plan, according to Boiron, is time. He explained that building a treasury through captured fees, bond mechanisms or limited emissions requires patience and disciplined management.Polygon prepares to onboard traditional finance in cryptoFor traditional finance (TradFi), liquidity stability and predictability are prerequisites for full DeFi adoption:“Traditional finance runs on models that need stable, reliable market access. If a DeFi protocol suddenly loses liquidity or slippage spikes, it creates a level of risk most institutions just won’t take.”However, Boiron said that Polygon’s solutions — sustainable treasury management, owned liquidity and transparent models — are not just for institutions. “These are good financial fundamentals that work for any protocol,” he said, dismissing suggestions that Polygon’s strategy is too narrow to address DeFi’s broader issues.Related: Yemenis are turning to DeFi as US sanctions target Houthi groupBuilding a scalable blueprint for chain-owned liquidityAs Polygon pushes for a DeFi reset, Boiron remains optimistic about getting support from frameworks like Europe’s Markets in Crypto-Assets Regulation and evolving US guidance. “We’re 12–18 months away from seeing a lot more institutional involvement,” he predicted.Looking to 2026, Boiron envisions a more stable DeFi ecosystem with less volatility, stronger community governance and sophisticated financial products bridging TradFi and real-world assets. He said Polygon (POL) could reduce reliance on mercenary capital, fostering true decentralization.He added that POL is the foundation for long-term growth, as it helps protocols focus on building better products and keeping users engaged, instead of plugging liquidity gaps or diluting tokens to stay afloat:“POL doesn’t solve everything on its own, but it gives protocols the breathing room to tackle bigger challenges like user retention and capital inflows the right way.”Boiron’s core message to DeFi protocols is clear: “Sustainable economics always win in the long run.” While market pressures make it tempting to chase high APYs, he noted that surviving protocols from past cycles prove the value of sustainability. “More teams are starting to get it,” he said, urging the ecosystem to adopt models that prioritize long-term growth over fleeting buzz.Magazine: Ethereum is destroying the competition in the $16.1T TradFi tokenization race

The US Federal Reserve has announced it would withdraw guidance for banks engaging in crypto asset and stablecoin-related activities.”The Board is rescinding its 2022 supervisory letter establishing an expectation that state member banks provide advance notification of planned or current crypto-asset activities,” the Board of Governors of the Federal Reserve explained in an April 24 statement.Any crypto-related activities will now be monitored through the Federal Reserve’s normal supervisory process, it said.The Federal Reserve is also rescinding its 2023 supervisory letter that impacted how state banks could engage in stablecoin activities.This is a developing story, and further information will be added as it becomes available.