Samer Hasn, a market analyst at asset broker XS Group, believes that a more robust regulatory framework in 2024 will be beneficial to investors. He told crypto.news, “What we witnessed with Changpeng Zhao being convicted and stepping down from Binance management will not just stop [there]. Rather, it may make the market more compliant and transparent, which may contribute to paving the way for more confidence among lawmakers and law enforcement authorities in the U.S.”
The U.S. government will most likely continue to double-oversee Bitcoin (BTC) as the world’s largest crypto entity for many years. To allay fears of market manipulation, one can look to the Department of Justice, the Treasury, and other sources.
Hasn went on to explain that digital assets have been used as a currency for illegal activity, such as tax evasion and money laundering. As law enforcement agencies continue calling out companies with weak control procedures, there is a greater level of scrutiny. He cites Coinbase CEO Brian Armstrong, who recently spoke out against the “bad actors” in the crypto market. Armstrong also mentioned Binance’s $4.3 billion settlement with regulators, calling it a way to “turn the page as an industry and recognize that building a company offshore [and] skirting regulation is just not going to work.”
Hasn further stated, “The legal action against Binance has closed that chapter in crypto history. I also believe that these measures may enhance investor confidence and reduce their fears of huge collapses similar to what happened in FTX, with more oversight of the markets.”
Looking ahead, there are still many loose ends in the sector. Anticipation is high for the U.S. Securities and Exchange Commission to approve 13 new Bitcoin ETFs (exchange-traded funds), with issuers such as BlackRock, Bitwise, VanEck, WisdomTree, Fidelity, Valkyrie, Global X, Hashdex, and Franklin Templeton. As the new year approaches, the first few days will be of great importance to investors. According to Bloomberg, analysts expect a “window” within which SEC approval is possible starting on Jan 5th and ending Jan 10th.
Finally, Hasn noted that the markets seem to be clinging to this hope, which was reflected in Bitcoin’s rise to the highest levels this year. By Sunday, Dec. 2, it had exceeded the $39,000 mark, reaching $39,684.40 at 9 am EST.
