2024: A Pivotal Year for Crypto Regulation in the US
By all accounts, the crypto industry is at a critical juncture. Industry leaders agree that 2024 could be a make-or-break year for crypto in terms of legal and regulatory developments. While the future is uncertain, there are insights from analysts in finance, policy, and the NFT space that shed light on what to expect.
The Need for Regulatory Clarity
In order for progress to continue in the crypto sector, it is crucial that firms and startups have legal permission to operate. Unfortunately, the relationship between the American government and crypto has been marked by sporadic enforcement actions and prolonged lawsuits. However, Miller Whitehouse-Levine, CEO of DeFi Education Fund, believes that 2024 will bring much-needed clarity to US crypto regulation.
Pending Cases and Proposed Rules
Several major cases and proposed rules are set to shape the regulatory landscape in 2024. These include Coinbase’s legal challenge against the SEC, a Supreme Court case that could limit federal agencies’ powers, and Ripple’s battle with the SEC over cryptocurrency definitions. Additionally, executive agency rules from the SEC, IRS, and Treasury Department could have significant implications for the industry.
Potential Outcomes
The outcomes of these pending decisions vary greatly. If the IRS’s “broker” rule goes into effect, it could potentially collapse much of the American crypto ecosystem. On the other hand, if Coinbase wins its challenge against the SEC, it could prompt Congress to establish a regulatory framework for the industry. The nature of this legislation and its timeline remain uncertain.
A Wait-and-See Approach
Given the unpredictable nature of Congress, it is difficult to predict how regulatory decisions will unfold. Miller Whitehouse-Levine acknowledges the futility of making predictions in this regard. The future of crypto regulation in the US hinges on the outcomes of these cases and rules, and their impact on the industry as a whole.
Hot Take: A Defining Year for Crypto Regulation
2024 is set to be a pivotal year for crypto regulation in the United States. With major cases and proposed rules on the horizon, the industry’s stability and future growth hang in the balance. The decisions made in 2024 will have far-reaching consequences, shaping the regulatory landscape and determining whether crypto can thrive or face further challenges. As we await these crucial developments, it is clear that the crypto industry is at a critical crossroads.
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