Champions and Challenges for Crypto in 2024

Crypto Catalysts of 2024

Who drove the crypto market forward this year, playing a central role in BTC’s bullish autumn rise?

From political arenas to tech labs, regulatory boards to educational platforms, these leaders have been at the forefront, advocating for the industry’s advancement.

Their unwavering commitment, despite personal and professional risks, has propelled crypto to new heights.

Let’s recognize and celebrate their invaluable impact on the evolving crypto landscape.

Trump’s Bitcoin Turnaround

President-elect Donald Trump has made waves with his unexpected support for cryptocurrency. Promising to establish an official U.S. Bitcoin reserve and to make America the “world’s crypto leader,” Trump’s address at the Bitcoin 2024 conference showcased a sharp departure from his past, when he famously derided Bitcoin as a “fraud.”

The nature of Trump’s crypto ventures has shifted dramatically. In 2022, his connection to the market was limited to flashy NFT sneakers. Now, he’s at the helm of World Liberty, a major DeFi initiative with its own stablecoin and payment infrastructure.

Close aides suggest that the new president is laser-focused on ensuring America stays ahead of China in the global crypto competition.

Donald Trump attending the Crypto Conference in Nashville. Source: NYT

Cynthia Lummis

Republican Senator Cynthia Lummis from Wyoming has tabled a legislative initiative to create the first-ever U.S. strategic Bitcoin reserve.

Core aspects of the bill:

1. National Bitcoin Reserve: The Treasury Department will be tasked with managing the storage of Bitcoin under rigorous legal and security protocols, safeguarding the national reserve from both physical and cyber threats.
2. Incremental Bitcoin Purchases: The plan includes acquiring 1 million BTC gradually, which will constitute about 5% of Bitcoin’s total supply, framing it as a strategic asset on par with the nation’s gold reserves.
3. Funding Without Budget Expansion: The purchases will be financed through a redistribution of existing Federal Reserve and Treasury resources, allowing the program to progress without requiring extra budgetary funding or creating new financial burdens.
4. Upholding Individual Asset Rights: Private ownership of digital assets remains protected, with assurances that the government reserve initiative will not impact the financial independence of citizens or their ability to manage personal cryptocurrencies.

Legislation at the federal level of this caliber will inevitably ripple through Bitcoin’s valuation, sparking curiosity across the financial world.

Surprisingly, Senator Lummis does not possess formal qualifications in technology or economics, yet her keen understanding of these fields has earned her widespread admiration.

And it’s no secret—she’s a proud Bitcoin enthusiast.

Cynthia Lummis and her famed “laser eyes” Source: reason.com

Hester Peirce

SEC Commissioner Hester Peirce has emerged as a vocal defender of the crypto industry, advocating for fairer oversight and the establishment of clear regulatory frameworks.

Her defiance came into sharp focus on March 5, 2024, when she publicly opposed SEC leadership, led by Gary Gensler, despite being embedded in the very enforcement apparatus she condemned.

Following the SEC’s prosecution of ShapeShift, Hester Peirce published a scathing letter where she called the action “yet another chapter in the SEC’s ongoing saga of poorly planned cryptocurrency policies,” and remarked, “this enforcement decision amplifies the unintended consequences of the Commission’s regulatory strategy, while casting a deeper shadow over the crypto world.”

Her words landed like a duel invitation to Gary Gensler, and the crypto industry rallied behind her, honoring her with the nickname “Crypto Mom.”

“Crypto Mom” Hester Peirce, the SEC Commissioner. Source: disruptionbanking

Brian Armstrong

Coinbase CEO Brian Armstrong, nicknamed the “tank with soft treads,” has become a leading advocate for cryptocurrency, lobbying lawmakers in the US, UK, and Australia. His initiative, Stand With Crypto, marks the creation of the nation’s first independent on-chain advocacy group, designed to defend crypto community interests. Armstrong’s financial and ideological support has been crucial to its success.

In parallel, Coinbase’s legal team remains locked in a drawn-out, high-stakes struggle with the SEC, all while bolstering Ripple in their extended fight against regulatory pressure from the Commission.

To Brian Armstrong, cryptocurrencies represent a critical evolution in finance. His relentless advocacy aims to ensure the SEC’s backward-looking policies are left behind.

Brian Armstrong, CEO of Coinbase. Source: CCN

Michael Saylor — Building a Bitcoin Empire

Michael Saylor, founder of MicroStrategy and Bitcoin evangelist, continues advocating for corporations to adopt Bitcoin as a core reserve asset. In December, he made waves by proposing to Microsoft shareholders that the company overhaul its investment strategy and shift substantial assets into BTC. While his proposal didn’t gain immediate acceptance, Saylor’s commitment remains as fierce as ever.

By the close of 2024, MicroStrategy held a monumental 444,262 BTC, acquired at an average of $62,257 per coin. 

The majority of these purchases occurred this year, further underscoring Saylor’s unwavering belief in Bitcoin’s long-term promise.The ripple effect of MicroStrategy’s bold Bitcoin strategy is becoming evident. Heavyweights in the mining industry, including MARA Holding and Riot Platforms, are now setting aside their own Bitcoin reserves, drawing inspiration from Michael Saylor’s forward-thinking approach to digital assets.

Michael Saylor, founder of MicroStrategy. Source: Bloomberg

Why the SEC is Seen as Crypto’s Arch-Nemesis

Unsurprisingly, the U.S. Securities and Exchange Commission tops the list of crypto’s greatest hurdles. Under the leadership of Gary Gensler, the SEC has increased its scrutiny of the sector, adding confusion and forcing banks to limit services to crypto businesses. The result? A stifled industry and constrained investors.

Discover the full story of the SEC’s “debanking” campaign and other aggressive tactics in our article: Inside the US War on Crypto: Voices from the Industry

January may bring a turning point for the SEC, as Gensler’s potential resignation stirs hope for more balanced policies.

Meanwhile, the runner-up for crypto roadblocks is the UK’s Financial Conduct Authority (FCA). Known for its stringent oversight, the FCA has implemented such complex regulations that the majority of crypto license applications face rejection.

Promises from Rishi Sunak to establish the UK as a European crypto hub seem to have evaporated into thin air. The focus, instead, lies on Britcoin, the digital equivalent of the British pound.

Want to know more about the UK’s cryptocurrency regulations? Don’t miss our article: “Crypto Regulations in the UK”

Taking the third spot on the list of detriments to the crypto market is cybercrime orchestrated or supported by nation-states.

The rising aggression of North Korea’s Lazarus hackers and Russia’s TGR syndicate poses an escalating danger to the crypto industry. In 2024, these groups collectively inflicted financial damage exceeding hundreds of millions of dollars. Lazarus excels in cyber theft, while TGR—operating openly in Moscow—is a hub for laundering illicit funds.

December saw the UK's National Crime Agency (NCA) spearhead “Operation Destabilization,” a coordinated international effort to trace and dismantle the links between these cybercriminal groups.

2024 will be remembered as a year of high-stakes clashes between crypto enthusiasts and its critics. Despite significant hurdles, the industry has shown remarkable resilience. However, the ecosystem—initially designed to sideline governmental control—remains tethered to the outcomes of regulatory actions and initiatives against cyber threats.