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Binance joins Neo Council, 2.1 million NEO used to secure two Top 21 positions

Binance Staking has secured two positions on the Neo Council. At the time of press, Binance has voted with approximately 2.1 million NEO to secure its places in the Top 21. Binance is the world's largest custodial exchange with nearly US $9.07 billion in 24-hour volume, according to CoinCap.io. Binance Staking is a service that allows users to earn distributions offered on proof-of-stake or other networks that distribute rewards to participants. The platform provides two types of staking: flexible and locked. Flexible staking offers fewer rewards but allows users to move the underlying assets at any time. Locked staking requires users to deposit a token for a specific time frame but provides higher yields. For example, a minimum of 0.01 NEO locked for 15, 30, 60, or 120 days will earn increasing yields of 5.79%, 7.49%, 8.79%, and 13.56% (made in GAS distributions), respectively. In the announcement post, Neo Global Development said "Binance Staking's new membership in the ...
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Lawmakers urge ‘proactive policy’ for taxing digital currency staking rewards


A number of congressional lawmakers have written to the Internal Revenue Service (IRS), urging a proactive policy for taxing digital currency that avoids hampering proof of stake technology.

In a letter to IRS Commissioner Charles Rettig, Representatives David Schweikert, Bill Foster, Tom Emmer and Darren Soto set out how current policy is holding back progress in the sector.

Explaining how taxing staking rewards as income could lead to excessive tax burdens, the lawmakers appeal for an alternative approach that supports and encourages innovation.

"It is possible the taxation of 'staking' rewards as income may overstate taxpayers' actual gains from participating in this new technology. It could also result in a reporting and compliance nightmare, for taxpayers and the Service alike."

According to the letter, staking rewards can be more effectively taxed when they are sold, with those validating transactions rewarded by creating new tokens. The lawmakers argue that staking rewards should be treated like other kinds of taxpayer-created assets, which attract liability at the point of sale.

The language of the letter was drafted with support from the Proof of Stake Alliance (POSA), an industry organization established to promoting staking. Alison Mangiero, President of TQ Tezos and a member of the Proof of Stake Alliance, welcomed the proposals as a "common-sense solution."

"Staking rewards, similar to a farmer cultivating produce and selling it at market, should be assessed for taxation when they are sold: we don't tax an apple when it is plucked from a tree or a tomato fresh off the vine."

The signatories to the letter are members of the Congressional Blockchain Caucus, a bipartisan group committed to advancing policy around blockchain.

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