The first Elliptical blog post of 2024 highlights key developments and trends in
#crypto regulatory and policy for the year 2024. The US SEC's approval of 11 spot
#BitcoinETFs is seen as a positive step, offering hope for clearer regulatory developments in the country. The top five trends to watch in 2024 include:
1. Stablecoins Regulation: The opportunities and risks of
#stablecoins will be a focal point, especially with new requirements for stablecoin issuers in the European Union coming into effect. Financial crime risks associated with stablecoins will also be a priority on the international agenda.
2. Leading Crypto Hubs: Paris, Dubai, and Hong Kong are identified as leading hubs for well-regulated crypto activity. These cities are expected to entrench their status in 2024, providing clarity in regulatory frameworks, though with high standards for market participants.
3. US Regulatory Uncertainty: The US is predicted to remain uncertain due to structural factors, jurisdictional entanglements, and legislative challenges. Despite this, institutional players are expected to drive progress in opening up the US financial sector to greater crypto-related innovation.
4. DeFi in the Spotlight: 2024 will be crucial for decentralized finance (
#DeFi ), with regulators focusing on aligning efforts globally to address perceived challenges. The year will determine if the DeFi space can be made compatible with regulation while remaining decentralized and innovative.
5. AI and Crypto Fusion: There will be increasing regulatory discussion around the potential fusion of artificial intelligence (AI) and crypto. Innovators envision the convergence of
#AI and blockchain technologies, prompting regulators to scrutinize the risks and issues associated with this convergence. The EU's proposed AI Act is mentioned as a regulatory framework similar to MiCA, governing both AI and crypto.
Overall, 2024 is expected to be a defining year for the crypto industry, with a spotlight on stablecoins, leading crypto hubs, US regulatory challenges, DeFi, and the potential fusion of AI and crypto.