Hey there, PoI readers! 💫

It's Mochi, back with another serving of tantalizing tech and web3 news. From lawmakers trying to ban politicians from Polymarket and Colombia cracking down on crypto taxes to a16z's massive $15 billion bet on America's future and Grok's AI disaster, we've got a lot to unpack.

INTEL BRIEF

🟧 A US lawmaker introduced a bill to ban government officials from betting on political prediction markets after a Polymarket user made over $400,000 on a bet about Venezuelan President Maduro's removal.

🟧 Colombia's tax authority rolled out new crypto reporting rules requiring exchanges to collect and share user data, joining a global wave of countries tightening crypto tax oversight.

🟧 Venture capital giant a16z raised $15 billion to invest in American tech dominance, with crypto remaining a "key architecture" for winning the next century alongside AI.

🟧 Elon Musk's xAI restricted Grok's AI image generation to paying X subscribers only after the tool was widely criticized for allowing users to create non-consensual sexualized images.

Someone Made $400K Betting on Maduro's Removal and Now Congress Wants to Ban Political Gambling

New York Representative Ritchie Torres isn't messing around. He just dropped the Public Integrity in Financial Prediction Markets Act of 2026, backed by over 30 Democratic lawmakers, and honestly? The timing is chef's kiss levels of suspicious.

Here's the tea : Some mystery Polymarket wizard dropped $32,000 on a bet that Venezuelan President Nicolás Maduro would be removed from power by January 31st. Plot twist? US President Donald Trump announced just days later that US forces had entered Venezuela and captured Maduro. The bet? It netted over $400,000 for this lucky (or suspiciously well-informed) individual.

Torres' new bill would ban federal elected officials, political appointees, Executive Branch employees, and congressional staff from trading on prediction market contracts related to government policy or political outcomes—especially when they've got that sweet, sweet material nonpublic information.

"The most corrupt corner of Washington, DC may well be the intersection of prediction markets and the federal government," Torres declared, not holding back one bit. He's basically saying insider trading isn't just a risk anymore—it's already happening.

The lawmaker is particularly concerned that officials could use platforms like Polymarket or Kalshi to personally profit by pushing policies that fatten their wallets. He even took a shot at Trump, suggesting the former (and now current) president and his associates could be using crypto and prediction markets to "enrich himself and his family."

Meanwhile, over in the Senate, lawmakers are gearing up for a Thursday markup on the CLARITY Act (aka the Responsible Financial Innovation Act)—one of the most comprehensive crypto bills expected to reshape how the CFTC and SEC regulate digital assets.

Polymarket? They're staying suspiciously quiet on this one. No comment yet.

Rep. Ritchie Torres introduced a bill to ban government officials from betting on political prediction markets after a Polymarket user made $400K+ on a Maduro removal bet

The bill would prohibit federal employees with insider info from trading on contracts tied to government policy or political outcomes

Senate is holding a Thursday markup on major crypto market structure legislation (CLARITY Act)

Colombia Is Coming for Your Crypto Data as Global Tax Reporting Gets Serious

Colombia just joined the global crypto tax crackdown party with Resolution 000240, dropped on December 24th (Merry Christmas, crypto traders! ). The country's tax authority, DIAN, is now requiring crypto exchanges, custodians, and other service providers to collect and submit user and transaction data as part of a shiny new reporting regime.

But before you panic—these rules are aimed at the platforms, not individual users directly. So you're not filing extra paperwork... yet. Your favorite exchange? They're doing the heavy lifting here, collecting your info and shipping it off to tax authorities like a well-oiled compliance machine.

Colombia's playing by the big kids' rules too, aligning with the OECD's Crypto-Asset Reporting Framework (CARF)—basically the international gold standard for keeping tabs on digital assets. The resolution includes due diligence requirements, fair-market valuation methods, and (drumroll please) penalties for platforms that don't comply. Ouch.

This isn't just a Colombia thing, though. We're witnessing a global tax tightening tsunami. The OECD reported in November that 48 jurisdictions have already enacted or are close to enforcing CARF-related data collection laws, with first reporting expected in 2026 and automatic info exchanges kicking off in 2027. Another 27 jurisdictions are expected to join the party by 2028.

Over in the US, lawmakers might pass the CLARITY Act in 2026—a massive regulatory framework that'll define how digital assets are classified, taxed, and issued. No more grey areas, folks.

Not everyone's rushing in, though. India's financial authorities threw shade at crypto again this Thursday, warning lawmakers that cryptocurrency transactions could hinder tax enforcement during a parliamentary finance committee meeting. Translation? They're still not convinced crypto is their friend.

The takeaway? Tax authorities worldwide are closing the loopholes, and the wild west days of crypto tax ambiguity are fading fast. Time to get those records organized!

Colombia's DIAN introduced Resolution 000240, requiring crypto platforms to collect and report user/transaction data aligned with OECD's CARF standards

48 jurisdictions have enacted or are close to enforcing CARF laws, with first automatic data exchanges expected in 2027

India remains skeptical, warning that crypto transactions could hinder tax enforcement

A16z Just Raised $15 Billion Because Crypto Is Apparently Key to American Dominance

Venture capital powerhouse Andreessen Horowitz (a16z) just raised a massive $15 billion fund to invest in technologies they believe are critical to keeping America on top for the next century. And guess what made the VIP list? Crypto and AI, baby!

In a Friday post on X, a16z co-founder Ben Horowitz didn't mince words. He basically said that China and other competitors have been catching up to the US in recent decades, and if America doesn't keep innovating, it's game over—not just technologically, but economically, militarily, geopolitically, and culturally too. No biggie, right?

"Our mission is ensuring that America wins the next 100 years of technology," Horowitz declared. "That starts with winning the key architectures of the future – AI and crypto."

Horowitz emphasized that alignment between the US government and private sector is absolutely crucial. Translation? Silicon Valley and Washington need to be besties if America wants to maintain its edge. He warned that failure could cost the country its dominance, and honestly, the stakes couldn't be higher.

Now, here's where it gets interesting. The $15 billion is being divvied up across several verticals: $6.75 billion for Growth, $1.7 billion each for Apps and Infrastructure, $1.18 billion for the American Dynamism fund, and $700 million for Bio and Healthcare. Another $3 billion is earmarked for other venture strategies.

But wait—eagle-eyed crypto watchers might notice the a16z Crypto fund didn't get a slice of this particular pie. Before you panic, though, many crypto companies a16z has backed are actually part of its Growth fund, which spans multiple industries. So crypto's still very much in the game!

And just to prove they're walking the talk, a16z dropped $15 million into Babylon, a Bitcoin staking and lending protocol, this Wednesday. The goal? Supporting the development of the Bitcoin DeFi ecosystem and making BTC a more productive asset.

So yeah, crypto isn't just surviving in a16z's playbook—it's speculated to be a cornerstone of American technological supremacy. No pressure!

A16z raised $15 billion to invest in American tech dominance, calling crypto and AI the "key architectures" for winning the next century

Funds distributed across Growth ($6.75B), Apps/Infrastructure ($1.7B each), American Dynamism ($1.18B), and Bio/Healthcare ($700M)

Separately, a16z invested $15M in Babylon, a Bitcoin staking protocol, to boost Bitcoin DeFi development

Grok Let Users Generate Illegal Images So Now You Have to Pay to Use It

Elon Musk's xAI just threw up a paywall on Grok's AI image-generation feature after the tool became the internet's worst nightmare—allowing users to create non-consensual sexualized and nude images of women, children, and public figures. Yeah. Not great, Bob.

As of Friday, Grok now only lets paying X subscribers generate and edit images on the platform. Plot twist? The Grok app was still letting anyone generate images without a subscription at the time of publication. So... problem half-solved?

Here's what went down: Grok's image generator was initially available to anyone with daily limits, and users quickly discovered they could upload anyone's picture and ask the AI to edit it or generate sexualized versions. What followed was a veritable flood of deeply problematic content featuring children, actors, models, and prominent figures—basically everything you'd expect from giving the internet an unsupervised AI toy.

The backlash was swift and global. The UK, European Union, and India all publicly condemned X and Grok for allowing such misuse. The EU on Thursday ordered xAI to retain all documentation related to the chatbot (translation: "We're coming for you, keep the receipts"). India's communications ministry demanded immediate changes or threatened to strip X of its safe harbor protections in the country. The UK's communications watchdog also reached out to xAI to express their... concerns.

Musk himself tried to do damage control, tweeting last week that "Anyone using Grok to make illegal content will suffer the same consequences as if they upload illegal content." X also publicly stated it would stick to its policies against posting illegal content on the platform.

But here's the thing: the damage was already done. The tool was out there, widely accessible, and believed to have been massively misused before the restrictions kicked in.

So now it's behind a paywall—because apparently, making people pay for problematic AI features is the solution? The internet remains undefeated in finding new ways to be... well, the internet.

Grok's AI image generation is now restricted to paying X subscribers only after widespread misuse for creating non-consensual sexualized images

UK, EU, and India condemned the feature, with the EU demanding xAI retain all documentation and India threatening to remove safe harbor protections

Musk stated users creating illegal content would face consequences, but the Grok app was still allowing free image generation at publication time

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit wiser about the chaos unfolding in crypto and tech land. Remember to stay curious, stay informed, and keep those prediction market bets ethical (looking at you, DC insiders ).

Until next time, this is Mochi, signing off with a virtual high-five!

P.S. Don't forget to share your thoughts, questions, and favorite crypto puns with us. very voice matters in the PoI community! 📣❤️ Share the newsletter

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