What Were the 4 Biggest Crypto Stories of 2023?

Last year was pivotal in terms of the crypto industry's relationship with regulators and financial markets. US authorities cracked down on major players and financial titans threw their hats into the ring as mainstream finance moved to accept, if not embrace, cryptocurrencies.

Here are four stories that sum up the year in crypto.

BlackRock Files for Bitcoin ETFs

The price of Bitcoin has recovered significantly from the lows seen in late 2022, and much of the renewed interest in cryptoasset has to do with the possibility of at least one spot Bitcoin ETF being approved early next year. While Futures-Based Bitcoin ETFs Already existing, several Bitcoin spot ETF applications in the past have been rejected. BlackRock's entry In the realm of bitcoin ETFs, everything changed in June.

BlackRock's ETF filing was seen as a big step forward for cryptocurrencies. the signature is one of the largest asset managers in the world and could confer a higher level of credibility to the crypto market. Once BlackRock entered the race, other industry giants, as fidelityrenewed push for its own spot ETF offerings.

The approval of a Bitcoin spot ETF would be a pivotal moment for the crypto asset in terms of regulation and trust. Experts estimate that a Bitcoin ETF could create a place tens of billions of dollars in new money in the Bitcoin market in a matter of years. For now, the Securities and Exchange Commission (SEC) has until January 10 to decide on Ark Invest's ARK 21Shares Bitcoin ETF.

Sam Bankman-Fried found guilty of fraud

Last year, FTX CEO Sam Bankman-Fried was seen by his followers as the cryptocurrency industry's wunderkind and potentially the world's first. billionaire. He is now awaiting sentencing after being found guilty of fraud and conspiracy for the role he played in the misuse of client funds on his exchange.

While SBF may be getting what it deserves, the reality is that many FTX customers have been burned and may never recover. Although FTX intends to return 90% of recovered assets to clients, depositors They will not recover the real value of the funds they had in the exchange at the time of its bankruptcy. This is because not all assets will be recovered and those depositors have missed out on this year's cryptocurrency rally.

The entire FTX saga is a stark reminder that many of the benefits of cryptocurrencies are lost when users do not control their private keys. It remains to be seen whether cryptocurrency users will take self-custody more seriously in the future.

Justice Department charges Binance and 'CZ'

Recently, members of Congress have regained interest in protecting against the use of cryptocurrencies for financial crimes. That concern was brought to the fore by recent charges by the US Department of Justice (DOJ) against Binance Holdings Ltd., the world's largest crypto exchange. In November, Binance and its founder Changpeng Zhao, known as "CZ," pleaded guilty to money laundering charges and agreed to pay $4.3 billion in fines and settlements.

Treasury Secretary Janet Yellen said the exchange allowed "illicit actors to transact freely, supporting activities ranging from child sexual abuse to illegal narcotics and terrorism, in more than 100,000 transactions."

Binance's petition is further evidence that the "Wild West" days of cryptocurrencies may be coming to an end. Investors may now want to think about other areas where stricter regulatory compliance anti money laundering Regulations could be enforced, such as with stablecoins.

Coinbase, Kraken and Binance charged by SEC

binance was sued by the SEC in June for operating an unregistered stock exchange, as was Coinbasealso in June, and Krakenin November.

The action against Coinbase was particularly notable, as the company has frequently touted its openness to working with US regulators and complying with rules. Regardless of Coinbase's intentions, the reality is that the exchange has listed assets that the SEC considers securities.

At the heart of the matter is a disagreement over what is considered a security and who has the authority to decide. Brian Armstrong, CEO of Coinbase said in April that he would consider moving the exchange if Congress and regulators did not provide greater clarity on crypto regulations in the coming years. Even federal officials, such as Commodity Futures Trading Commission President Rostin Behnam, has said The US regulatory framework needs to be clarified.

In 2024, the industry will continue to seek greater clarity on which crypto assets are securities and which are commodities. In the meantime, the SEC will likely continue to operate under Chairman Gary Gensler's belief that "everything other than bitcoin" falls within its purview.