In the last year, the crypto world faced turbulence but has now rebounded, sparking a fresh rally anticipated to surge in 2024. Bitcoin’s price has soared over 160%, surpassing $44,000, while Coinbase’s stock tripled, and the overall crypto market value almost doubled. Coinbase CEO Brian Armstrong sees this as a sign of crypto’s permanence, noting that the industry’s comeback was unexpected after a drastic 2022 downfall that affected many investors and major players.
Optimism for 2024 stems from resolving past issues like FTX founder Sam Bankman-Fried’s criminal conviction and Binance CEO Changpeng Zhao’s guilty plea. Market enthusiasts anticipate broader acceptance and clearer regulations from Washington, predicting approval for spot Bitcoin ETFs in January, and foresee a potential bull run after Bitcoin’s “halving” event in April.
However, the industry faces risks, including US regulatory challenges and concerns about risky practices. Uncertainty about regulatory clarity in Congress remains, with debates on cryptocurrencies’ impact on the financial system. While JPMorgan Chase CEO Jamie Dimon criticized crypto, Coinbase stands at the forefront, gaining from competitors’ setbacks. Yet, its legal tussle with the SEC and regulatory uncertainties pose risks to its future earnings.
Despite these challenges, Coinbase remains committed to navigating the crypto landscape, advocating for regulatory clarity while acknowledging the industry’s ups and downs. The SEC’s actions against crypto-related entities increased in 2023, heightening uncertainties regarding digital assets’ classification as securities.
Coinbase’s plea for a new regulatory framework was denied by the SEC, prompting an appeal. Amid the legal clash, Coinbase is actively engaging in lobbying efforts to foster a clearer understanding of crypto regulations in Washington.
Armstrong, emphasizing crypto’s enduring impact, highlights the industry’s need for consistent messaging to policymakers amidst its ongoing evolution.
