The crypto world is buzzing with anticipation as 2024 unfolds, promising a slew of game-changing events. From groundbreaking regulations in the European Union to the potential green light for Ethereum exchange-traded products, and the impending sentencing of Sam Bankman-Fried (SBF), the former CEO of FTX, who made headlines for one of the most massive financial scandals in recent memory, here’s what you need to keep an eye on.
Europe’s MiCA Regulation Takes Center Stage
After years of relentless demand for clear crypto policies, the European Union finally revealed its Market in Cryptoassets (MiCA) regulation. This comprehensive framework is designed to establish strict rules that can safeguard the crypto industry from the kind of turmoil it experienced in the past.
The journey to MiCA began in September 2020 and was preceded by two years of groundwork. The regulations aim to oversee the issuance and provision of crypto services while erecting barriers against fraudulent activities.
The MiCA regulation received resounding support in the EU Parliament with a vote of 517-38 in favor in April. Subsequently, the EU Council, comprising 27 member states, gave unanimous approval to the new licensing policy in May.
The implementation of MiCA is set to unfold in two phases: stablecoin regulations will kick in on June 30, 2024, followed by the remaining provisions on December 30, 2024. This move may serve as a catalyst for other regions to establish their own crypto laws.
Ethereum ETFs Await Regulatory Green Light
2024 holds promise for Ethereum enthusiasts as the crypto community eagerly awaits regulatory approvals for Ethereum exchange-traded funds (ETFs). While Bitcoin spot ETFs are expected to secure approvals in January, Ethereum ETFs are on the horizon between February and May.
Numerous firms, including Ark Invest/21Shares, VanEck, Hashdex, Invesco/Galaxy Digital, and Grayscale Investments, have submitted applications to the U.S. Securities and Exchange Commission (SEC) for spot and mixed ETFs. If granted, these approvals could open up broader access to the Ethereum ecosystem, potentially attracting more investments.
SBF’s Legal Fate Hangs in the Balance
Another significant event slated for 2024 is the sentencing of Sam Bankman-Fried (SBF), the former head of FTX. Following approximately four hours of deliberation, a jury found SBF guilty of a litany of charges, including wire fraud, securities fraud, commodities fraud conspiracy, and money laundering conspiracy.
SBF’s mismanagement led to the mingling of user assets and defrauded investors of substantial sums, all while presenting his crypto empire as a haven for customers. The collapse of FTX in November 2022 triggered a ripple effect that brought down other firms. As FTX navigates its way through bankruptcy proceedings, SBF faces the daunting prospect of a maximum prison sentence of 115 years.
2024 promises to be a pivotal year in the world of cryptocurrency, with these developments shaping the landscape for investors and enthusiasts alike. If you’re eager to know what the future holds for Bitcoin, be sure to delve into this article for more insights.