Now that 2024 is about to begin, here are three major events that can affect the growth trajectory of the crypto ecosystem.
As the crypto industry expands, the community remains vigilant for important events that could affect the growth trajectory of the ecosystem. From the looks of it, the year 2024 will be full of them.
One such event is the creation and implementation of clear crypto regulations in important regions such as the European Union. The crypto community is also watching the approvals of several Ethereum exchange-traded products and the prison sentence of FTX founder and former CEO Sam Bankman-Fried (SBF), who perpetrated one of the biggest financial frauds in history. modern.
Europe’s MiCA Implementation
Years after the incessant request for clear policies by the cryptocurrency industry, the EU unveiled the regulation of the Crypto Asset Market (MiCA). This framework would establish strict rules to prevent the massive collapse of crypto companies, as seen last year.
The European Commission introduced MiCA in September 2020 after two years of preliminary work. The regulation aims to provide clear policies for the crypto industry, prevent massive collapses, and protect against fraudulent activities.
The EU Parliament voted 517 to 38 in favor of MiCA in April, while the EU Council, made up of 27 member states, unanimously approved the new licensing policy in May.
The regulation will be implemented in two stages: the stablecoin rules will come into effect on June 30, 2024, and the rest will apply on December 30, 2024. The implementation of the new regulations could encourage other regions to establish clear laws for the crypto industry.
Ether ETF Approval
While the crypto industry anticipates the approval of several spot Bitcoin exchange-traded funds (ETFs) in January, there is also an expectation of regulatory approval for Ethereum ETFs between February and May.
Several companies, including Ark Invest/21Shares, VanEck, Hashdex, Invesco/Galaxy Digital, and Grayscale Investments, have filed applications with the US Securities and Exchange Commission (SEC) to launch spot and mixed ETFs.
Approval of the products could give investors broader access to the Ethereum ecosystem, making room for more fund inflows.
SBF’s Sentencing
Another big reason for excitement in 2024 is the SBF ruling scheduled for March. After approximately four hours of deliberations, a jury found the disgraced cryptocurrency magnate guilty of seven counts, including wire fraud, securities fraud, commodity fraud conspiracy, and money laundering conspiracy.
SBF co-mingled users’ assets and defrauded investors of billions of dollars while marketing its crypto empire as a haven for clients. The implosion of FTX in November 2022 triggered a contagion that dragged other companies to their demise. While the stock market seeks a suitable route out of bankruptcy, SBF faces a maximum sentence of 115 years in prison.
Conclusion
The year 2024 is expected to be a significant year for the cryptocurrency ecosystem, with three major events poised to shape its growth trajectory. The implementation of the Crypto Asset Market (MiCA) regulation in the European Union represents a pivotal step in providing clear policies for the crypto industry, aiming to prevent massive collapses and protect against fraudulent activities. The two-stage implementation of MiCA, with stablecoin rules taking effect on June 30, 2024, and the remainder on December 30, 2024, could set a precedent for other regions to establish robust laws for the crypto sector.
Furthermore, the potential approval of Ethereum exchange-traded funds (ETFs) between February and May, including applications from various prominent companies, could significantly broaden investor access to the Ethereum ecosystem. This approval may facilitate increased fund inflows, offering investors new avenues for participation in the expanding crypto market.
On a different note, the impending sentencing of FTX founder and former CEO Sam Bankman-Fried (SBF) in March 2024 adds a layer of anticipation. Found guilty of various financial fraud charges, including wire fraud, securities fraud, commodity fraud conspiracy, and money laundering conspiracy, SBF faces a maximum sentence of 115 years in prison. The outcome of this high-profile case could have implications for the broader cryptocurrency industry, shedding light on the legal consequences of fraudulent activities and contributing to the ongoing maturation of the crypto space.
In summary, the regulatory developments in the EU, potential Ethereum ETF approvals, and the resolution of the SBF case are key events that will likely influence the trajectory of the crypto ecosystem in 2024, shaping its landscape and determining the level of trust and legitimacy within the industry.
