2024 is supposed to be an eventful year for the crypto industry, especially since the next Bitcoin halving is awaited in the first quarter. However, depending on various factors, it may be delayed until May or even occur earlier in March, so investors should keep an eye on the market’s evolution.
The halving will have a significant impact on crypto. The block reward will become 3.125 BTC from 6.25 BTC, which will most likely increase prices and take the market towards a bullish trend. Therefore, investors are advised to prepare their portfolios for the moment and learn where to buy Bitcoin before the halving, when everything will boom. That’s because the last halving showed a significant price rise one day after the event, showing strong volatility trends.
But the halving is not the only prominent thing that will happen in 2024. At least, that’s what Ripple Labs considers.
The fight between Ripple and the SEC will end
The ongoing battle between the US Securities and Exchange Commission and Ripple considerably impacted the company. While the official institution claimed Ripple violated the law in the US due to unregistered sales of securities, the blockchain company always stated how exaggerated the agency was.
Although the SEC has filed the claim since 2020, Ripple had a few small wins that make company leaders believe 2024 will be the year for them. The SEC considers XRP as security, but experts showed how it’s better seen as a commodity, along with coins like Litecoin, Solana, and Cardano.
Therefore, the chief legal officer at Ripple stated that the lawsuit against the company would end, along with the SEC’s enforcement-based regulation. Indeed, experts believed that the approach of the SEC wasn’t appropriate since a steady legal regulation was needed in order to protect crypto consumers.
The SEC will shift its attention to other industry businesses
Unfortunately, Ripple warns that 2024 will be the year the SEC continues its regulation misuse of other leaders in the industry, and the company’s statement is indeed based on real events because Ripple is not the only target of the SEC.
One of the largest crypto exchanges, Coinbase, was also challenged by the SEC since it considered that it listed and traded tokens that must be registered as securities and were instead regarded as commodities. After the attack, Coinbase provided a petition asking the SEC to create a proper legal framework for cryptocurrencies to respect the law. However, the SEC hasn’t offered any guidance on the subject.
Not even Binance escaped the SEC’s suing, even though the company assumes they haven’t met the suing requirements. Yet again, the SEC stated that the crypto exchange provided unregistered securities to the public to purchase and trade.
Even Kraken, the third most known crypto exchange, was sued for failing to register its operations as the SEC imposed in 2023. The company also paid a $30 million fine to settle the case, but it hasn’t ended yet. Therefore, more exchanges should expect similar cases with the SEC in 2024.
The US will continue to be skeptical about crypto
The third prediction from Ripple concerns crypto regulation in the US that currently lacks a proper framework for investors. The chief legal officer considers that Congress will settle on the need for better crypto regulation but won’t take adequate measures to start it.
Indeed, US institutions weren’t as interested in cryptocurrency before the FTX collapse, after which institutions adopted a fierce position against digital assets. According to the SEC, only Bitcoin can be deemed a commodity and, therefore, be introduced within financial markets, while the rest of cryptocurrencies are commodities.
While the SEC may want to settle crypto as securities from pure concern for users, it may also be because they’d have more control over crypto as securities. For instance, stocks and bonds enter the security category, and those who invest in them must provide highly detailed information about their transactions, while commodities don’t require similar strict guidelines.
Still, demand for crypto increases
The senior vice president at Ripple also provided valuable insight into the crypto market in 2024, stating that global banks are beginning to approach digital solutions to increase efficiency and transparency. The demand for crypto investments is rising, mainly since inflation, recession and global uncertainties heavily affect the global economy. People became interested in crypto because, despite the high volatility and risks, the industry works based on decentralization, so there isn’t a single control point that can be prone to market manipulation.
Hence, more banks and financial companies are trying to link crypto products with their services. For instance, VISA, the multinational payment card service, now supports digital currencies and ensures credential issuance. At the same time, it continuously collaborated with Ethereum in order to improve its crypto coverage and technology. Therefore, it plans so much more for the future of crypto.
Finally, banks are diving into tokenized assets that are especially valuable to real estate traders and investors. These technologies allow any type of consumable to be transformed into a token, facilitating the trading process and eliminating bureaucracy since regular arrangements are done through smart contracts. These programs automatically ensure the settling when both parties provide their part, saving time and resources.
Hence, the SEC and the world must ensure the proper legal framework for investors and crypto users to leverage technology safely. Although the crypto market is considerably volatile, as long as users have the appropriate framework and are aware of the risks, they should be allowed to invest and exchange digital assets without constraints from centralized institutions.
Bottom line
As 2023 ends, the crypto market is getting ready to sustain new challenges in 2024. That’s why management from Ripple provided a few predictions on what will happen to crypto soon. They believe the SEC will finally get rid of charges against them but change their focus to similar exchanges. At the same time, the US will slightly alter its approach to crypto frameworks but still consider the risks of crypto.