In every way, cryptocurrency is at a crossroads. Across the markets, legal and regulatory environment, and Web3 startup ecosystem, there is little disagreement among industry leaders that 2024 could be one of the most important years for cryptocurrency. Whether these events will finally lift the industry out of winter and to new highs, or whether it will put it in jeopardy, remains another question.
But don’t panic, dear reader. Nothing can be certain about the future, especially when it comes to cryptocurrency.decryption We spoke with analysts in the finance, policy, and NFT fields to get a peek behind the scenes.
After reviewing the short-term impact of spot Bitcoin ETFs and how cryptocurrencies and traditional finance can meaningfully integrate, we take a look at our perspective on when regulatory clarity will finally reach cryptocurrencies in the United States.
At the end of 2023, all eyes in the cryptocurrency industry were focused on a few companies. potentially mainly Development It is poised to significantly expand the stability and reach of the industry.
However, these upcoming developments will only matter as long as cryptocurrency companies and startups are legally allowed to operate.
For years, sporadic enforcement actions and stalled litigation have defined the U.S. government’s relationship with the cryptocurrency sector. According to Miller Whitehouse-Levine, CEO of cryptocurrency lobbying group DeFi Education Fund, 2024 will likely finally bring some much-craved certainty to U.S. cryptocurrency regulation, for better or worse.
“There was a lot of action, but not a lot of decisions,” Whitehouse-Levine said. decryption. “but… There’s a lot going on. Developments in the judiciary and executive branch will have a very significant impact in the coming year.”
Coinbase, to name a few highlights pending in the 2024 plan: legal issues SEC refuses to clarify rules for cryptocurrencies. An upcoming Supreme Court case that could strip the powers of federal agencies like the SEC. define one’s strength; Ripple’s Conclusion Battle with the SEC Regarding defining numerous cryptocurrencies as securities.
And that’s to say nothing of several proposed enforcement agency rules that could have an even bigger impact if they become solidified in 2024. Definition of “Exchange” Includes cryptocurrency, an IRS rule that extends the term “broker” to: Effectively Outlawing DeFiAccording to Treasury rules: I’ll put you on the blacklist. Any cryptocurrency mixer is considered a national security threat.
“These decisions will have a huge impact on the industry as a whole and how regulation will play out in this country going forward,” Whitehouse-Levine said.
The range of possible consequences from pending decisions is enormous. For example, if the IRS pursues “broker” rulemaking and the policy passes judicial review, Whitehouse-Levine says much of the U.S. cryptocurrency ecosystem will collapse.
“That would completely halt the development of decentralized systems in the United States,” he said.
On the other hand, if Coinbase wins its challenge to the SEC, the decision would force Congress to finally take action and acknowledge the need to create a regulatory framework for the industry, he said.
But how beneficial is the bill? Will it be driven and defined by cryptocurrencies? vocal supporteror noticeably enemy? And during that period historic Parliament dysfunctionHow quickly will it actually pass?
When it comes to Congress, Whitehouse-Levine acknowledged there is little need to predict anything.
“I have no idea,” he said.
Crypto Crystal Ball is a series examining the hottest topics in the industry in 2024. Stay tuned for additional perspectives to come.
Editor: Andrew Hayward
