The EU’s new cryptocurrency tax reporting regime under DAC8 deliberately focuses on actionable targets, leaving decentralized finance (DeFi) out of scope for the time being.
Colby Mangels, former advisor to the Organization for Economic Co-operation and Development (OECD) and current global head of government solutions at Taxbit, said the rules prioritize identifiable intermediaries such as custodians and exchanges, who will be required to collect and report standardized user activity data under the OECD’s Crypto Asset Reporting Framework (CARF).
However, the process of DeFi truncation may not continue. Tax authorities are increasingly relying on anti-money laundering (AML) frameworks to determine accountability in cryptocurrency markets, and regulators are closely monitoring whether DeFi platforms can be classified as virtual asset service providers, Mangels said.
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Animoca, RootstockLabs partner to bring Bitcoin DeFi to Japanese institutions
Animoca Brands Japan has partnered with RootstockLabs to bring Bitcoin-native DeFi tools to Japanese companies, with a focus on treasury management.
This collaboration will localize Rootstock’s enterprise software in Japan, enabling companies to manage their Bitcoin holdings and access onchain financial instruments built on the Rootstock network, which are secured by Bitcoin’s Proof of Work (PoW) through embedded mining.
The move reflects growing interest among Japanese companies in using Bitcoin as a treasury asset, as companies explore infrastructure beyond simple custody.
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US Senators are considering amendments to the Cryptocurrency Market Structure, DeFi bill
US Senators are preparing to consider amendments to the Digital Commodity Intermediaries Act (DCIA), the long-awaited cryptocurrency market structure bill, with decentralized finance emerging as one of the contested areas.
The bill would clarify regulatory roles between the Commodity Futures Trading Commission and the Securities and Exchange Commission, but lawmakers and industry groups have raised concerns about how provisions affecting decentralized finance will be implemented.
The debate suggests that decentralized finance remains a fault line in US market structure talks, even as lawmakers push to introduce a framework after years of delays.
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Messer says Depin farmers are heading into a $10 billion sector despite the token’s decline
A new “State of DePIN 2025” report from Messari and Escape Velocity says decentralized physical infrastructure (DePIN) networks have quietly grown into a roughly $10 billion sector, generating about $72 million in onchain revenue last year.
While many tokens in this category are down 90% or more from their previous highs, the report found that leading networks are posting recurring revenue from real-world usage across areas such as bandwidth, compute, energy, and sensor data.
Massari said DePIN is approaching an infrastructure business model, where usage and cash flow are more important than token performance. This dynamic has made DePIN’s revenue more resilient than DeFi protocols and layer-one networks during the current economic downturn, according to the report.
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Citrea ZK-rollup launch ignites debate over Bitcoin block space
Citrea has launched its own zero-knowledge Bitcoin backlog mainnet with Bitcoin-backed lending, structured products and a locally issued USD stablecoin, ctUSD, positioning Bitcoin as the primary collateral for decentralized finance and payments.
The project aims to transform “economically dormant” Bitcoin into active on-chain liquidity with proofs fixed and data available on the Bitcoin base layer. The team expects early DeFi liquidity to reach $50 million.
The launch has reignited the long-standing debate over Bitcoin’s block space, as Citrea’s DeFi activity consumes measurable Bitcoin bandwidth and raises questions about how much complexity the underlying layer should support.
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DeFi Market Overview
According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market cap ended the week in the red.
Yei Finance Token (CLO) fell more than 58% over the week, representing the largest decline in the past seven days. This was followed by a token called Seeker (SKR), which fell 55% last week.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights, and education regarding this dynamically advancing space.
