30s Summary

The 2024 elections saw a rise of pro-crypto politicians in Congress, setting the scene for favorable developments in the cryptocurrency industry. A shift from “regulation by enforcement” to clear rules is expected, progressing regulation de-risking and broadening opportunities. Sectors predicted to benefit include Decentralized Finance (DeFi), Artificial Intelligence (AI), and Decentralized Physical Infrastructure (DePIN). Traditional finance and utility tokens may also gain traction. The liberalized regulatory environment could thus foster widespread adoption of crypto, offer institutions confidence, and give entrepreneurs freedom to innovate.

Full Article

The 2024 elections were big news for the world of cryptocurrency. Now that there are 287 pro-crypto congress members and a president-elect who claims that the U.S. is the “crypto capital of the world”, things are starting to look up. The industry is now set to speed up its progress toward becoming mainstream.

From here on out, straightforward, transparent and predictable rules will replace the previous “regulation by enforcement”. This marks a significant development for the industry. The next step will be regulatory de-risking, which will open up doors to new markets, products and apps. Here are a few sectors that are expected to excel thanks to these changes:

Decentralized Finance (DeFi) is a real game changer. DeFi uses smart contract applications to eliminate the need for middlemen. It allows everyone to access financial services like trading, lending, borrowing and more. Past regulatory conditions have targeted these tokens, stunting their growth. But with a more favorable climate expected, tokens will finally be able to make the mainstream breakthrough industry insiders have long been hoping for.

Artificial Intelligence (AI) is also on the rise. The combination of AI and crypto will bring about responsible innovation across both tech fields.

In more traditional finance, interest rates play a big part. Upcoming fixed income markets will see growth thanks to traditional financial institutions opening up to the idea of global crypto markets. This will introduce the convenience of the interest rate swap market to the world of crypto.

Non-functional or memecoins have been really popular recently, but a better regulatory environment could shift the focus back to utility tokens, encouraging more widespread adoption.

Lastly, Decentralized Physical Infrastructure (DePIN) uses token incentives to encourage mass community involvement. This helps create large, decentralized physical networks – a more scalable and cost-effective solution than centralized ones.

The pro-crypto congress and president-elect are expected to bring about big changes in the world of crypto. They’ll create a regulatory environment that promotes — not deters — innovation. This will give institutions the confidence they need to get involved. It will also give entrepreneurs the freedom they need to build. The future of crypto is looking pretty bright right now.

Disclaimer: Please note that this content represents the opinion of the author. It does not necessarily reflect the views of CoinDesk, Inc. or its owners and affiliates. The content was edited by Alexandra Levis.