6 Factors That Could Make or Break Crypto in 2025: Citi

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Most notably, the SEC alleges that at least 13 crypto assets available to Coinbase customers — including Solana’s sol, Cardano’s ada, and Protocol Labs’ filecoin — should be considered securities, meaning they’d need to be subject to strict transparency and disclosure requirements. Cryptocurrency resembles currency operating independently without the need, for banks. As the landscape of money continuously evolves it is crucial for all individuals involved to remain vigilant. Staying informed about cryptocurrency prices, regulatory developments, technological advancements and corporate adoption becomes paramount.

The law, initially proposed in 2019 as a response to Meta’s digital currency project Diem, formerly known as Libra, aimed to clean up fraud, money laundering and other illicit financing in the crypto space, and stamp out the sector’s bad actors more broadly. Despite crypto’s recent fading buzz, Killeen of Stillmark Capital doesn’t expect regulators to become fatigued by crypto in 2024. In the same time year that two of crypto’s leading figures were sent to jail, shares of Coinbase — and prices of digital currencies like bitcoin and ether — have rallied sharply.

We offer a comprehensive coverage of the technical details behind recent and upcoming changes and events in the cryptocurrency industry, enabling our readers to stay up-to-date with the latest trends and insights. While ETF activity and broader volumes have improved, and stablecoin market caps have risen, more widespread adoption is required to produce returns beyond the post-election euphoria, they said. The analysts said bitcoin would have added value in multi-asset portfolios during this year’s rally.

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Lastly, the analysts said regulation will be a forbesnews247.com reigning theme next year as Trump takes office. The incoming US President has appointed several pro-crypto candidates to his cabinet. Their policies remain unclear, though the industry generally expects lighter regulation, which could fuel more widespread adoption. More stablecoins entering the space could threaten long-time stablecoin leader Tether’s leadership, the analysts say, particularly from a new partnership between Circle and centralized exchange Binance.

While many regions have passed laws with potentially tough penalties, the U.S. is still the only country that has actively taken action against large-scale crypto companies and projects. Thus far, the U.S. has led that campaign against crypto firms by enforcement and has, by far, been the most punishing of regulators when it comes to penalties and fines. The region has been increasingly warming to crypto assets, despite a broader anti-crypto push from China, which banned bitcoin trading and mining in 2021. Earlier this year, the Monetary Authority of Singapore, which is recognized for clear fintech and crypto regulations that do not rely heavily on enforcement actions, finalized rules for stablecoins, making it one of the world’s first jurisdictions to do so. The analysts said they are monitoring bitcoin volumes, stablecoin market values, and rising adoption in countries with currency problems, such as Turkey, Argentina, and Venezuela.

Crypto.com may not offer certain products, features and/or services on the Crypto.com App in certain jurisdictions due to potential or actual regulatory restrictions. T3 FCU exemplifies the power of public-private collaboration in real-time cryptocurrency crime-fighting, freezing over USDT 100 million in illicit assets. 2025 will see a sea change in the U.S. regulations, acceptance of bitcoin as digital gold and stablecoins as important rails for payments, says EY’s Paul Brody. Those developments will likely help stablecoins continue to lead the way toward decentralized finance, they add. «For a 5% allocation, performance needs to be higher – double-digits using the S&P’s longer-term risk-reward trade-off, or 21% using recent returns where the high reward/risk implies investors need to be compensated well for taking additional risks,» the analysts wrote. «These flows have been the most significant driver of crypto returns, and we expect this to continue in 2025,» the analysts said.

France has been tempting crypto companies and traders alike to its shores with the promise of tax cuts on crypto profits and a smoother registration process for digital asset firms. «However, other regions, including Singapore, Dubai, Hong Kong, and the European Union, are also developing robust regulatory frameworks,» Perry added. «While these regions may not be as visible in international media for enforcement actions, they possess significant and sometimes stringent regulatory mechanisms.» It also sought to tackle a perceived threat from so-called stablecoins, or blockchain-based tokens that serve as a representation of government money but are backed by private companies. Stablecoins are effectively digital currencies that are pegged to the value of fiat currencies like the dollar.

  • Stablecoins are effectively digital currencies that are pegged to the value of fiat currencies like the dollar.
  • But crypto companies have begun to push back, with some threatening to decamp from the U.S. entirely should this dynamic of policing by enforcement continue.
  • T3 FCU exemplifies the power of public-private collaboration in real-time cryptocurrency crime-fighting, freezing over USDT 100 million in illicit assets.
  • «This year was a strong one for crypto, registering a 90%+ increase in total market cap,» Citi analysts led by Alex Saunders said in a Friday note.
  • Trump advocated for crypto on the campaign trail and, since his election win, has picked several crypto supporters to lead his administration, including Paul Atkins as chair of the Securities and Exchange Commission.
  • Since the start of this year, Coinbase’s stock price has surged more than 400%.

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Kwon now faces nine charges, including commodities fraud and money laundering conspiracy, instead of the eight counts he was previously charged with. Starting from Jan 1, 2024, France’s Financial Markets Authority, or AMF, is set to amend its registration requirements for crypto firms to better align with MiCA, according to an August statement from the regulator. Companies are already getting ready to take advantage of the new rules, with Coinbase submitting an application for a universal MiCA license in Ireland. If and when it is approved, this would allow Coinbase to «passport» its services into other countries like Germany, France, Italy, and the Netherlands. The European Union looks set to apply its Markets in Crypto-Assets legislation, which is aimed at taming the «Wild West» of the crypto industry, in full force starting next year.

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Coinatory is not liable for any inaccuracies or errors resulting from the use of AI-generated content. By using our website, you agree to these terms and acknowledge the role of AI in our operations. In summary staying updated with the news is vital, for anyone engaged in this domain. By keeping of developments individuals can make informed choices regarding their cryptocurrency investments. «Innovations, partnerships, and new entrants in the stablecoin space pose a risk to Tether’s dominance,» they said. «This year was a strong one for crypto, registering a 90%+ increase in total market cap,» Citi analysts led by Alex Saunders said in a Friday note.

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Do Kwon was the boss of Terraform, which operated two cryptocurrencies – TerraUSD and Luna – both of which collapsed in 2022, sparking a wider sell-off in the crypto market. Two years later, in 2018, Abu Dhabi Global Market created the world’s first regulatory framework for cryptocurrency to foster innovation while safeguarding consumers. Blockchain analytics firm Chainalysis notes that regulators in the UAE were early to cryptocurrency, with Dubai leading the charge when it launched a blockchain strategy in 2016. Meanwhile, the European Union is moving towards a unified regulatory framework for cryptocurrencies with its Markets in Crypto-Assets Regulation (MiCA). He argues that even without rules on crypto from lawmakers, routine complaints that U.S. regulators are not providing guidance to the industry are without merit.

«Some members of the industry forget the SEC is relying on laws that were written when American football players wore leather helmets, and the SEC must apply those laws to the FinTech industry,» he said. Concerning criminal enforcement, Damian Williams, the U.S. attorney for the Southern District of New York, has been leading some of Justice’s highest-profile crypto prosecutions, including the monthlong trial of Bankman-Fried, the disgraced FTX founder. In November, a jury found the former FTX chief executive guilty of all seven criminal counts against him following a few hours of deliberation. Bitcoin originated during a banking crisis, sparking a digital currency evolution that now boasts institutional celebration. As gold and Bitcoin register a bull market, Jan van Eck stated that these assets are essential for any portfolio. Ethena Labs targets the DeFi frontier with new stablecoin products, aiming to dethrone Tether as the industry leader.

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