Heroes and Villains: Key Figures Who Shaped the Crypto Industry in 2024

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As an analyst with over two decades of experience in the financial industry, I have witnessed the ebb and flow of markets, regulations, and technological advancements. The year 2024 in the crypto space was a rollercoaster ride, marked by heroes and villains that left indelible marks on the industry’s trajectory.

2024 saw the crypto sector characterized by a clear distinction between champions and adversaries. The regulatory landscape, spearheaded by Gary Gensler and opposition from anti-crypto legislators, cast a grim cloud over the industry, while hackers capitalized on weaknesses, causing significant financial damage.

On the other hand, individuals such as Donald Trump, Coinbase, and Hester Peirce came to be seen as champions, pushing for transparency, advancement, and a future that embraces cryptocurrency.

The Villains: Who Undermined Crypto in 2024?

Gary Gensler and the SEC

2024 found Gary Gensler, Head of the United States Securities and Exchange Commission (SEC), as a divisive figure within the cryptocurrency sector. Known for his firm regulatory approach, many crypto supporters and professionals viewed him as an antagonist due to his actions. His tenure was characterized by forceful enforcement measures and unclear regulations that left numerous crypto companies questioning their obligations regarding compliance.

As an analyst, I find myself observing the strategic moves under Chairman Gensler’s leadership at the SEC. The Securities and Exchange Commission has proposed an unparalleled $2.6 billion budget to enforce regulations in the cryptocurrency markets, indicating a more assertive stance towards the industry. However, this firm approach has sparked considerable controversy.

As a crypto investor, I’ve been feeling the frustration lately due to Gary Gensler’s ambiguity about what exactly qualifies as a security in the cryptocurrency world. During his testimony before Congress, he was put through the wringer, facing tough questions about the lack of clear guidelines, particularly regarding Ethereum.

Significant anger arose due to his announcement to prevent an Ethereum ETF from being approved. Consequently, prominent cryptocurrency companies such as ConsenSys took legal action against the SEC, claiming that Gensler had exceeded his jurisdiction.

The mistakes made by Gensler were not ignored, as they drew increasing scrutiny. In response to growing criticism, Hester Peirce, also known as “Crypto Mom” and a commissioner at the SEC, acknowledged faults in the agency’s methodology.

The backing of Gensler by the Biden administration intensified the situation. A potential appointment of Gensler as Treasury Secretary, reportedly under consideration by Vice President Kamala Harris, caused unease within the cryptocurrency community. This perceived unfavorable stance towards crypto solidified their role as adversaries in the eyes of many within the crypto world for 2024.

Despite increasing demands for responsibility, Gensler decided to step down, with his departure planned for early 2025. His anticipated successor, Paul Atkins, who is set to assume office in January, is known for being more open towards cryptocurrencies, offering the industry a hint of optimism.

Hackers: North Korea and Beyond

2024 saw a persistent issue with cyberattacks affecting the cryptocurrency market, leading to a staggering $2.1 billion in losses just through Q3. Some of the significant occurrences included:

  1. Radiant Capital suffered a devastating $50 million hack, later traced to North Korean cybercriminals.
  2. Hackers bypassed Coinbase’s AML systems, stealing $15.9 million.
  3. Bitfinex Hack: After years of investigation, one of the perpetrators of the infamous Bitfinex hack was sentenced to five years for laundering $10 billion, alongside his wife, who got 18 months.
  4. The SEC’s Twitter account was compromised, triggering a massive investigation that ended with an arrest.

The continuous danger of cybercrimes in the cryptocurrency world is underscored by these ongoing attacks and North Korea’s ever-changing strategies. In fact, even well-known personalities have unfortunately experienced such crypto-based hacking incidents.

Celebrity athletes Kylian Mbappé and Lionel Messi have fallen victim to cryptocurrency fraud, while more recently, the account of popular rap artist Drake was compromised for the promotion of a questionable meme token.

The Heroes: Who Saved Crypto in 2024?

Donald Trump: The Crypto Champion

Rather than being an adversary to the digital currency world, Donald Trump became a highly regarded figure among cryptocurrency enthusiasts. His supportive statements about cryptocurrencies during the 2024 U.S. presidential campaign sparked excitement within the industry. He presented a detailed plan for regulating cryptocurrencies, pledging to repeal restrictive measures and encourage innovation in this field.

Trump promised to dismiss Gary Gensler and subsequently appointed Paul Atkins instead, indicating a significant change in the Securities and Exchange Commission’s (SEC) strategy. Trump’s ambitions went beyond this, encompassing proposals to create a Bitcoin reserve within U.S. monetary policy.

In addition to addressing old cryptocurrency regulations beyond the efforts of Gensler, he has also pledged action. Notably, Trump recently designated David Sacks as a significant player in dismantling Operation Choke Point 2.0, a policy that is thought to single out financial institutions supportive of cryptocurrencies.

As a researcher, I found the addition of Trump’s proposed Department Of Government Efficiency (D.O.G.E) particularly intriguing in his campaign. Not only did this department involve key figures such as Elon Musk and Vivek Ramaswamy, but its acronym also carried a humorous yet symbolic connotation within the realm of cryptocurrencies. This creative touch underscored the crypto-focused nature of his political ambitions.

Coinbase: The Industry Whistleblower

Notably, the prominent cryptocurrency platform, Coinbase, has been instrumental in bringing light to questionable regulations within U.S. financial institutions. In a public disclosure, the company unveiled that certain banks were instructed by the Federal Deposit Insurance Corporation (FDIC) to restrict crypto-related services.

The action sparked debate about potential institutional prejudices towards cryptocurrencies. Coinbase’s lobbying initiatives underscored the importance of fair regulatory treatment that encourages technological advancement.

By the end of October, Brian Armstrong, CEO of Coinbase, brought attention to the mounting frustration in the cryptocurrency sector due to perceived overly strict regulation. Moreover, he criticized the regulatory body for unclear actions taken during Chairman Gensler’s term.

Additionally, Armstrong pointed out some controversial remarks made by the financial regulator. He requested that the upcoming SEC chair retract what he terms as “baseless lawsuits” and offer an apology to the American people.

In simpler terms, Armstrong suggested that the new chair of the SEC should drop all unnecessary lawsuits and offer an apology to the American people. While this wouldn’t undo the past harm done to the country, it would be a step towards rebuilding trust in the SEC as an institution.

Hester Peirce: The Voice of Reason

Inside the Securities and Exchange Commission (SEC), Hester Peirce persistently supported the advancement of cryptocurrency innovation. Her open admission of issues in the agency’s enforcement measures was an uncommon instance of self-reflection within the regulatory system. Peirce remained a beacon of optimism, pushing for transparent regulations and equitable treatment for crypto businesses.

Peirce mentioned that we were aware of potential legal doubts regarding our power to act as we did, yet we chose to proceed anyway.

2025 is shaping up to be a pivotal year as Gensler steps down and Trump’s ideas advance, with the industry showing remarkable resilience in tough times, hinting at its capacity for prosperity if it can successfully manage these hurdles under skilled guidance and clear rules.

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2024-12-23 20:09