Decentralized Diaries for the Year of 2024 (Part 2)
What portends for the crypto industry in 2025?
Everything is topsy-turvy right now, but it will be an exciting ride!
Meanwhile, as we look to take on Part 2 of our year in review on all things crypto, events unfolded that show what 2025 could look like. Here’s Part 1 of our 2024 Decentralized Diaries rearview assessment.
- Innovation thrived in 2024;
- The crypto community had an impact on the elections;
- The IRS tinkered with crypto taxes;
- The world’s first AI crypto transaction occurred;
- Crypto adoption is growing;
- Privacy-focused stablecoins are now possible;
- And much more!
Of course, these are your decentralized diaries!
Interested in getting your brand in front of the massive & high level audiences of Digital Wealth News and AI&Finance? Click here to schedule a zoom meeting w/ publisher Cindy Taylor
Bitcoin Hovers at $93k (as of 12/30/24)
Prices continued to slide, with Bitcoin’s prices moving from a $92,403.13 low to a $99,884.57 high, settling at $93,224.10.
The altcoins are also looking bearish.
Ethereum (ETH) is at $3,385.29, Solana (SOL) at $191.91, Avalanche (AVAX) at $36.19, Chainlink (LINK) at $21.29, Polkadot (DOT) at $6.93, and Uniswap (UNI) at $13.26.
The CFTC Started the Year with a DeFi Report
For the CFTC, the year started with a bang. In January, the regulator’s Technical Advisory Committee voted 14-1 to adopt its 79-page DeFi report. The document (comprehensively) covered the sector and provided a basis for project operations and enforcement actions.
Similarly, during a March 6 House Agriculture Committee hearing on Capitol Hill, the CFTC Chair Rostin Behnam requested that Congress pass the Financial Innovation and Technology Act for the 21st Century (FIT Act).
Consequently, Benham iterated that it would take a year to develop the CFTC’s internal rules once the legislation became law.
In October, a CFTC’s Global Markets Advisory Committee subcommittee approved a proposal allowing ledger-based digital assets to be collateral for commodities and derivatives trading activities.
Moreover, in November, the CFTC’s Division of Clearing and Risk (DCR) confirmed the Options Clearing Corporation’s (OCC) role in clearing spot crypto commodity ETF options.
During a March 7 Senate Banking Committee testimony, Fed Chairman Jerome Powell rebutted rumors of the Central Bank’s launching a CBDC. Furthermore, Powell indicated that the Fed will deploy a CBDC via the banking system should the need arise.
The IRS Contributed to the Ongoing Crypto Tax Conversation
America’s tax man kept up the pace with several moves. In January, the IRS unveiled tax rules requiring individuals to report digital asset transactions worth $10,000.
According to an April 12 CNBC interview, Guy Ficco, the IRS Criminal Investigation Chief, identified an increase in crypto-related tax crimes.
In April, the IRS also introduced its draft 1099-DA form for the coming year.
Tether and Chainalysis Launched a Transaction Monitoring Tool
In May, stablecoin issuer Tether partnered with Chainalysis to introduce a transactions observation solution. The offering enabled in-depth analysis of surface and dark web-linked transactions for investigation and enforcement actions.
There was Some SAB 121 Drama
Interactions about the SEC’s SAB 121 accounting rule reached a fever pitch, with Congress overturning the procedure in May. In June, President Joe Biden overturned the measure.
In September, the SEC provided certain exemptions for primary crypto custodians.
Furthermore, at a September 16 public Wyoming Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology hearing, Chris Land, general counsel for Senator Cynthia Lummis (R-WY), revealed that BNY Mellon had exemptions under new SEC guidance.
The Crypto Community Made a Showing at the Elections
Things got exciting with industry participation and its impact on the recently concluded November elections. Things started early, with a May 16 Bloomberg report identifying crypto political donations crossing the $94 million mark by mid-year.
In July, Gemini’s “2024 State of Crypto survey” provided some interesting insights. 73% of respondents indicated that their voting decisions hinged on a candidate’s crypto political stance.
According to an August 19 Coinbase post, younger voters held the key to winning the elections. The post also indicated that Gen Z and millennial voters will be the majority of the electorate by 2028.
Pro-crypto PAC-supported candidates had a strong showing at the polls. Forty-eight of fifty candidates won their races, with the PACs raising $135 million.
The World Bank Issued a Tokenized CBDC Bond
In May, the World Bank issued a digital bond with wholesale Central Bank Digital Currency (CBDC) settlement options. In addition, the SIX Swiss Exchange’s digital asset platform listed the seven-year, 200 million Swiss Franc (CHF) instrument.
Similarly, key industry players, including Wells Fargo, Visa, Citi, Mastercard, and US Bancorp participated in a tokenization settlement experiment. The setup imitated real-time dollar and securities settlement processes.
Coinbase Announced the First AI-to-AI Crypto Transaction
Premier cryptocurrency exchange Coinbase pushed boundaries with the first AI-to-AI transaction on the Base Sepolia Network. Coinbase deployed Multi-Party Computation (MPC) technology to create the source wallet.
The sending AI agent also transferred the tokens after receiving them from a faucet.
Swift Revealed Support for Digital Assets
Following an upsurge in innovation, Swift unveiled plans to support digital assets and (regulated) crypto tokens. In a September 11 post on its website, the payment communications ecosystem indicated the exponential growth in industry advancements as reasons for the move.
Circle Went Big on Privacy in a Whitepaper
Besides its rumored ongoing IPO activities, Circle published a Whitepaper in November that unveiled a privacy-focused blockchain framework. The document described the conversion of ERC-20 tokens to their confidential versions.
