In 2024, the launch of new spot crypto ETFs marked a significant development in the financial landscape. For the first time, Bitcoin became a focal point in political campaigns, while the resurgence of meme coins captured the attention of investors’ attention again. The developments have resulted in remarkable increases for almost all significant crypto currencies.
Bitcoin has seen a noteworthy increase of over 100% this year and is swiftly approaching the $100,000 mark.
The emergence of a new regulatory landscape for crypto currency
In the wake of the 2022 crypto market crash and the dramatic downfall of the FTX cryptocurrency exchange, discussions have intensified regarding the potential implementation of a comprehensive regulatory framework for cryptocurrencies in the United States.
There is a growing consensus that action is necessary to transform the crypto market from its current “Wild West” status. Regrettably, there has been a noticeable lack of progress over the past two years.
2025 may mark a significant turning point for cryptocurrency, as a new regulatory framework could be on the horizon. A likely shift in the regulatory landscape may begin with a diminished role for the SEC, which has effectively served as the primary overseer of the cryptocurrency sector. President-elect Donald Trump has committed to replace Gary Gensler, the current head of the Securities and Exchange Commission (SEC), immediately upon taking office.
This decision is likely to strike a chord with cryptocurrency investors, who have expressed frustration over what they view as the SEC’s overly aggressive regulatory stance on the industry.
Should new cryptocurrency legislation advance in Congress, it is anticipated that the Commodity Futures Trading Commission (CFTC) will emerge as the primary regulatory authority for the crypto sector rather than the Securities and Exchange Commission (SEC).
The proposed legislation clarifies permissible actions and restrictions within cryptocurrency investments. The potential outcome may include a repeal of SAB 121, an accounting regulation from the SEC that has faced significant criticism regarding the treatment of cryptocurrencies on the balance sheets of financial institutions.
Sovereign governments are engaged in a competitive “arms race” in cryptocurrency.
As the presidential campaign entered its final months, discussions intensified around the emergence of cryptocurrency as a significant national strategic priority. Some cryptocurrency proponents have proposed the possibility of a Bitcoin “arms race” as nations globally embark on aggressive Bitcoin acquisition efforts.