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A16z Joins Legal Fight Against Treasury and IRS Over DeFi Rules

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Michele Korver, head of regulation at Andreessen Horowitz’s blockchain arm, A16z Crypto, has voiced strong opposition to the US Treasury and IRS’s newly issued broker reporting rule.

In an official statement, she claims that it jeopardizes the future of decentralized finance (DeFi) innovation in the United States.

Treasury’s “Midnight” Reporting Rule Lambasted

In a December 30 tweet, Korver outlined A16z’s support for a lawsuit filed by the DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council. This lawsuit aims to block regulations stemming from the Infrastructure Investment and Jobs Act, which seeks to expand the definition of brokers in a way that could include DeFi trading front-ends.

These platforms, which allow users to interact with decentralized protocols, do not directly facilitate transactions, a distinction highlighted in the lawsuit. The groups argue that the rule imposes undue burdens on DeFi entities, violates the Administrative Procedure Act (APA), and exceeds the Treasury’s statutory authority.

Korver described the rulemaking process as a rushed “midnight” decision that undermines DeFi’s potential to deliver accessible, efficient, and consumer-focused financial services. She further stated the broader implications of the rule, warning that it could stifle innovation and drive DeFi operations offshore.

A16z Crypto even went on to reiterate that it would defend the sector through multiple avenues, including legal challenges and legislative advocacy with Congress and the incoming executive branch. Korver reassured developers that industry attorneys are working to protect this technology, stating that these efforts are critical to preserving the transformative potential of decentralized financial systems.

“We believe that this final rule exceeds Treasury’s statutory authority, violates the Administrative Procedure Act (APA), and is unconstitutional. DeFi builders should feel confident that industry attorneys are working hard to protect this technology. We will keep fighting on all fronts – in the courts, and with the help of Congress and the incoming executive branch.”

IRS Attracts Backlash

Jake Chervinsky, a prominent voice in crypto policy and head of policy at Blockchain Association, also weighed down on the recent developments and pointed out the swift legal response by the crypto industry on the broker rule, which was challenged within 24 hours of its announcement. Chervinsky praised the industry’s evolution of policy infrastructure in the USA over the last couple of years and expressed optimism about the future of crypto and its ability to push back against regulatory overreach.

This stance has been echoed by other prominent figures in the crypto space. Unsiwap founder Hayden Adams, for one, criticized the rule’s timing and potential impact while suggesting that it represents a deliberate attempt to hinder DeFi innovation. He expressed confidence in legal and legislative challenges to overturn the rule.

Meanwhile, Uniswap CLO Katherine Minarik also said that “there is no good reason for the IRS’s new rule misclassifying DeFi technology as brokers.”  The exec added,

“It races past the plain limits set by Congress, it will produce far more pointless paperwork than the IRS can handle, it contradicts itself throughout on the tech, and it imposes a burden that could cripple DeFi entirely. All so we can … conduct unnecessary mass surveillance on crypto transactions by everyday Americans. DeFi is the antidote to debanking. The last thing we can afford to do is try to choke it to death next.”

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4 ‘Rich Dad Poor Dad’ Quotes for Bitcoin Investors in 2025

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In an Apr. 20 post on X, Kiyosaki wrote, “BITCOIN is $84k today. Strongly believe Bitcoin will reach $180k to $200k in 2025.” Five days later, BTC was trading above $93,600.

Earlier, on Apr. 18, the “Rich Dad, Poor Dad” author predicted that Bitcoin’s price will eventually skyrocket to $1 million. His related price predictions spelled doom for the dollar’s buying power:

“I strongly believe, by 2035, that one Bitcoin will be over $ 1 million dollars. Gold will be $30k and silver $3,000 a coin.”

“People who heeded my warnings are doing well today. I am concerned for those who did not,” wrote Kiyosaki in the long-form X update. He warned, “This coming Great Depression will cause millions to be poor… and a few who take action may enjoy great wealth and freedom.”

Dire Economic Straits and Enterprising Bitcoin Investors

Kiyosaki isn’t a contrarian voice to warn of a difficult economic downturn ahead. Federal Reserve Chair Jerome Powell warned in April that the US could soon be mired in a stagflationary period of low growth and rising prices.

Kiyosaki is also not the only financial expert who has predicted that Bitcoin’s price will reach $1 million.

In fact, his timeframe for it is conservative compared to Twitter founder Jack Dorsey’s, who predicted a $1 million BTC price by 2030 in May last year.

But, Kiyosaki is firmly in the high-conviction column for Bitcoin’s potential upside prices five and ten years from now. Here’s how some of his classic investment advice applies to BTC.

1. Kiyosaki on Income vs. Wealth

“The rich focus on their asset columns while everyone else focuses on their income statements.”

In his New York Times bestseller on personal finances and building wealth, Kiyosaki makes an important distinction between wealth and income. He points out that income takes most of your time and effort to sustain, but that wealth sustains your income automatically.

This means even high-income individuals can struggle under equally big spending routines and borrow money at substantial interest rates to maintain a certain way of living.

Thus, not long ago, PYMNTS and the Lending Club found in a survey that about 50% of Americans with six-figure incomes may be living paycheck to paycheck.

In April, the Philadelphia Federal Reserve said that late credit card payments and minimum payments are at the highest level since 2012.

Individuals and households with these spending routines are swimming in the opposite direction of the macro financial currents of the past ten years, as the voracious Bitcoin hoarders.

Managing finances this way is bargaining a harder tomorrow for an easier today. But the way frugal and thrifty saver/investors budget is bargaining a harder today for an easier tomorrow.

2. ‘Rich Dad, Poor Dad’ on Investing

“You must know the difference between an asset and a liability and buy assets. An asset puts money in your pocket. A liability takes money out of your pocket.”

Kiyosaki also discerns between assets and liabilities in an individual or household’s financial balance book. In his opinion, houses should not be considered assets because they cost money to maintain and finance.

During the US housing market boom that preceded the 2008 financial crisis and the great recession, conventional financial wisdom said to buy a house because its value would continue going up forever.

But starting in 2007, a mass wave of defaults and foreclosures crashed house prices. Bitcoin launched soon after that to create a space in the financial ecosystem based on settlement instead of lending.

Instead of paying future obligations to consume more today, as with housing loans, Bitcoin is like collecting future rewards by consuming more efficiently today and buying BTC with the savings.

If it continues to appreciate in value due to its scarcity and global popular demand, it will remain an asset rather than a liability like a mortgage, credit card balance, or college loan.

3. Bitcoin and Financial Literacy

“Illiteracy, both in words and numbers, is the foundation of financial struggle.”

Another key point of Kiyosaki’s message in “Rich Dad, Poor Dad” was that families, schools, and the government have mostly failed to educate Americans about the basics of finance and investing.

He says that many people don’t really understand the disadvantages of borrowing money and paying interest instead of saving money and collecting returns on investments.

That kind of bad financial math doesn’t just keep many Americans out of investing in Bitcoin and cryptocurrencies. It keeps them from saving any money using any method.

Last December, a Schroders US retirement survey found that half of Gen Xers, Americans aged 44 to 59, have not done any retirement planning at all.

In the cryptocurrency social media community, users like to post, “Do your own research.” Bitcoin aficionados especially like to post, “Do the math.”

One benefit of learning about investing and doing financial math is that it can help to counteract the often more convincing pull of immediate gratification and result in healthier financial behavior.

4. Household Finance, Consumer Debt, and Bitcoin

“A person can be highly educated, professionally successful, and financially illiterate. Many financial problems are caused by trying to keep up with the Joneses.”

In fact, the main thrust of Kiyosaki’s book is that he found it remarkable in the course of his life’s experiences, how blatantly neglected financial and investment thinking is among even people of high intelligence, career success, and social status.

The basics of accounting, budgeting, investing, and tax law are not learned or practiced by a shocking swath of the populace, he contends, despite the importance of these modalities to beneficial outcomes that people desire.

If most people cannot be bothered to devote two to three hours a week to learning and eventually mastering these reliably rewarding and basic areas of competency, then it’s no mystery why Bitcoin remains inaccessible to many because it sits well enough beyond their threshold for healthy curiosity.

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Bitcoin Price Analysis: BTC Faces Major Resistance Ahead of ATH Challenge

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Bitcoin has signaled notable bullish strength by breaking above both the 100 and 200-day moving averages at $90K. However, as the price approaches the critical $100K psychological threshold, a temporary consolidation phase is expected before any further breakout.

Technical Analysis

By Shayan

The Daily Chart

Bitcoin has recently notched a strong bullish signal, staging a major market shift driven by substantial buying pressure. This rally has propelled the price above a critical resistance zone, reclaiming both the 100 and 200-day moving averages at $90K — a key indication of buyers’ dominance.

Currently, BTC is approaching the psychological $100K threshold, a major resistance likely filled with significant supply. As a result, a temporary consolidation around this level is expected before any potential breakout occurs. A decisive move above $100K would likely pave the way toward retesting the all-time high (ATH).

The 4-Hour Chart

On the lower timeframe, Bitcoin confirmed its bullish momentum after breaking above the descending channel’s upper boundary at $84K. This breakout triggered an impulsive surge, pushing the price past the critical $90K resistance level, highlighting strong buyer commitment.

Now, the asset is nearing the crucial $100K psychological resistance, which also aligns with a major previous swing high. If buyers succeed in breaching this barrier, the road to Bitcoin’s ATH could reopen. Conversely, failure to break above may lead to a short-term consolidation below $100K before the next significant move.

On-chain Analysis

By Shayan

After Bitcoin completed its corrections and initiated recoveries in October 2023 and September 2024, Binance Futures funding rates notably turned deeply negative during the early stages of each rally. This recurring pattern highlights a persistent lack of investor confidence during sharp declines or prolonged consolidations.

In contrast, during strong Bitcoin rallies, FOMO-driven traders aggressively deployed leverage to open long positions, causing funding rates to spike sharply. This often signaled overheated conditions and triggered subsequent corrective pullbacks.

Currently, Bitcoin has surged more than 28% off its recent low. Following this rally, the funding rates have, with a delay, experienced a significant upward shift, signaling a renewed influx of leveraged long positioning.

Considering the historical behavior during the previous two major recoveries, current sentiment dynamics, and price structure strongly suggest that Bitcoin is well-positioned to break through its previous all-time highs in the near term.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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North American Corporations Are Wolfing Down Solana

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Touted as a potential Ethereum killer on its way up in the 2020-24 market cycle, Solana would still have a way to go to flip Ether’s market cap. Regardless, it has gone a long way in that direction as SOL boosters promised.

Over the last year, Bitcoin has outpaced Solana gains as SOL is going through a consolidation period. But over the past five years, SOL delivered over 10,000% ROI to BTC’s 1,100% returns on investment, according to data compiled by TradingView.

In one very bullish sign for both the long term digital currency accumulator and the near term altcoin trader, a pack of corporations is hogging up Solana the way Saylor’s Strategy has been having at Bitcoin.

3 US-Canadian Companies Go Full Saylor on Solana

1. Janover’s Still At It With A Fresh $11.5M SOL Tranche

The Nasdaq-traded real estate finance platform has former Kraken execs at the helm now, hired on to make a big play in Solana. They added $11.5 million more SOL to their corporate treasury over the past week.

2. Canadian SOL Strategies $500M Bite of Solana

Meanwhile, another company in Canada just made a whopping half-billion-dollar play for Solana. Based on its name, the OTCMKTS-listed corporation seems purpose-built to pile up SOL tokens.

SOL Strategies, Inc. just issued $500 billion in stock-convertible bonds like Strategy does for Bitcoin, all sold to New York-based ATW Partners, in order to stake the tokens for reward-mining validator nodes.

3. NASDAQ Listed Upexi Raises $100M for SOL Spree

In addition to these two corporate blockchain adopters, the Nasdaq-traded consumer brand developer Upexi just raised an astounding $100 million, with plans to use 90% of it to buy SOL. Upexi stocks soared 630% lately. Arthur Hayes was a major backer of the contract.

Big Solana Network Roadmap Milestones in April

4. Solana IoT Network Helium Expanding Like a Balloon

Meanwhile, the Helium network is moving right along, developing its Solana-powered Internet of Things ecosystem.

According to a recent report, Helium hit new all-time highs in April for “DAO voting participation, $MOBILE validator onboarding and usage-based rewards.”

Its $20/month unlimited mobile plan is now available in 3,000 Walmart stores. That shows how developers are building marketable real-world businesses using Solana.

5. Solana Foundation Huge Tweak to Secure Network Distribution

Finally, it may seem like a small note, but the Web3 sector specializes in managing operational security and risk on open networks. The core groups that made Bitcoin, Ethereum, and Solana the successes they are today consider matters like this when trading.

Moving forward, Solana has adjusted its onboarding and off-boarding process to raise more external stake and further decentralize the network’s validator nodes.

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