Odaily Report: The U.S. Department of Justice filed a Statement of Interest on November 6, stating that the Illinois digital asset tax harms federal policy and U.S. leadership in the digital asset space, and arguing that the tax's language is vague and discriminatory. The tax imposes a 0.2% levy on the full amount of digital assets processed by brokers, regardless of whether a sale or profit occurs.The U.S. Chamber of Commerce and the Securities Industry and Financial Markets Association (SIFMA), which represents broker-dealers, banks, and asset management firms, filed amicus briefs warning that the tax could affect traditional banks, custodians, and advisors that offer digital asset products. Crypto organizations including the DeFi Education Fund, Andreessen Horowitz, Paradigm, and Uniswap argued that the bill's definitions could bring software developers and decentralized protocols that do not hold client funds, cannot identify users, or determine transaction locations within the scope of taxation. (Decrypt)

Odaily reports: a16z, DeFi Education Fund, Paradigm, Uniswap, and several other crypto industry organizations have jointly submitted an amicus curiae brief in support of the legal challenge against Illinois' Digital Asset Tax Act, arguing that the law's scope is overly broad and unfairly targets the digital asset industry. Previously, the Blockchain Association, the Crypto Council for Innovation, and The Digital Chamber had already filed a lawsuit against the state of Illinois over the law. The law imposes a 0.2% tax on digital asset transactions, and its effective date has been postponed from the originally planned January 2027 to July 2027.

Odaily reports that a16z, DeFi Education Fund, Paradigm, Uniswap, and several other crypto industry organizations have jointly submitted an amicus curiae brief in support of the crypto industry's challenge to Illinois' Digital Asset Tax Act. These organizations argue that the act is overly broad in scope and unfairly targets the digital asset industry.

Odaily reports: Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading, and Paradigm have applied to the court to file an amicus brief supporting CFTC oversight of single-stock perpetual futures in the United States. The brief responds to a lawsuit filed last week by the Capital Markets Alliance (CMA); the CMA seeks to overturn the CFTC's approval of these products, arguing that equity perpetual contracts have no fixed expiration date and should be treated as "security-based swaps" that cannot be listed on CFTC-regulated exchanges. The institutions stated that the SEC has been involved since the beginning of the regulatory process, and that the SEC and CFTC jointly sought public comment.

Odaily reports that Paradigm co-founder Matt Huang posted on X that Kalshi's November 3 midterm election prediction market trading volume reached $729 million, approximately 3 times the single-day trading volume during the 2024 US presidential election.

Odaily: Paradigm unstaked 2.55 million HYPE through 15 different wallets over the past two days, worth approximately $224 million, accounting for 17.85% of its currently staked 14.26 million HYPE (about $1.26 billion) on Hypercore. The monitoring party noted that several weeks ago Paradigm also unstaked a large amount of HYPE, then consolidated the tokens into new wallets and restaked them, so it is expected that a similar operation may be taken this time. At present, it is not yet possible to confirm the specific arrangements after this unstaking.

Odaily: After Binance suffered a theft of over $6 billion in crypto assets, demand for safe-haven hedges in the Bitcoin market rose markedly, with institutional investors buying put options to hedge against short-term downside risk. Data from Paradigm, an institutional liquidity network for crypto derivatives, shows that within 8 hours after the hack, the notional value of Bitcoin options block trades reached about $590 million, roughly half of Deribit's Bitcoin options block trading volume over the same period, with trading direction clearly skewed bearish.Nicolas Quatravaux, Paradigm's head of EMEA, said the first large trade occurred at 20:38 UTC, about 15 minutes after the first outflows appeared from Binance wallets and before the incident was publicly disclosed. The trade involved buying 250 Bitcoin put options expiring October 31 with a strike price of $78,000, with a notional value of about $20 million; three minutes later, another 250 of the same options traded, with buyers paying about 35% more.After that, two more block trades each involving 1,000 BTC in mid-November-expiry put options with a strike price of $74,000 appeared, with a combined notional value of about $155 million. Overall, flows were concentrated in put options with strike prices of $74,000 to $78,000, close to the current spot price, indicating investors preferred to hedge against further short-term pullbacks rather than bet on an extreme crash. Deribit also saw an increase in put option trading, including a multi-leg put strategy spanning November and December expiries with a notional value of about $190 million. However, the market is not entirely bearish, with some traders still positioning for call options. (CoinDesk)

Odaily Report: Spencer Applebaum, General Partner and Co-Head of Venture Investments at Multicoin Capital, said that Multicoin Capital manages $2.7 billion in assets, will not follow institutions such as Paradigm in expanding its investment scope into AI and robotics, and will continue to focus on the digital asset sector. Regarding the "crypto + AI" concept, Applebaum said that some investors are looking for problems at the intersection of crypto and AI that do not actually exist. In response to the slowdown in capital deployment, he said that in 2023, most seed-round projects had post-money valuations of about $30 million and raised about $3 million, and that using a $422 million fund to invest in such rounds requires more time. In addition, the largest position of Multicoin Capital's hedge fund is the Hyperliquid-related token HYPE, all of which was purchased through the public market; the firm typically holds publicly traded assets for several years.

Odaily News: Primavera, a startup backed by Coinbase co-founder Fred Ehrsam, is planning to enter Venezuela's oil industry and take over operations at multiple local oilfields, with the goal of achieving a production rate of 100,000 barrels of crude oil per day in the near term.Primavera has recently signed multiple contracts with Venezuela's state-owned oil company Petróleos de Venezuela, S.A. and has hired industry executives from Chevron and Occidental Petroleum to oversee infrastructure construction and boost conventional and heavy oil production capacity. Notably, Ehrsam is also a co-founder of crypto investment firm Paradigm, with a personal net worth of approximately $2.4 billion. In addition to Ehrsam, Primavera's investment team includes Iribarren and former Quantum Energy Partners executive Dheeraj Verma. (Bloomberg)

Odaily News: About 6 hours ago, Paradigm conducted unstaking operations through 4 wallets.