Has the Global Financial Market Finally Embraced Crypto?

The first cryptocurrency, Bitcoin, was created in 2009 and since then, we have witnessed the introduction of hundreds of different cryptocurrencies. For those who do not have a deep understanding of cryptocurrency, there has been some concern regarding its place in the global financial market. As we reach the end of 2024 and head into 2025, what are the thoughts surrounding cryptocurrency, and has the global financial market finally embraced crypto?

Bitcoin and Wallstreet

In January 2024, Bitcoin took a significant step forward regarding global financial market acceptance by entering the world’s largest stock market, Wall Street. That means there is now trading of cryptocurrency on the exchange and 644,860 bitcoin was held by 11 U.S. ETFs after just two trading days. With Donald Trump entering the Whitehouse for a second term, the prices of Bitcoin and other crypto-related stocks soared, and the new president has said he will turn the United States into “the crypto capital of the planet”. Trump and his sons recently launched a crypto business, so the president of the United States has a significant interest in the cryptocurrency industry.

This is good news for anyone launching cryptocurrency products in the coming months and years. The upcoming ICO of Wall Street Pepe is a good example and the meme coin WEPE is using a multifaceted approach, which should sit well in the current climate following the announcement of Trump as the new president. Community engagement, humor, and strategy combine to make Wall Street Pepe an interesting opportunity for investors. Using Pepe the Frog, a popular internet meme, this is an intriguing meme-based cryptocurrency, featuring a decentralized exchange (DEX) launch, and one to follow.

Regulation

Cryptocurrency has been accepted, rejected, and somewhat ignored by various nations and governments throughout the years. However, this is changing and governments worldwide are considering ways to regulate digital currencies. One of the main reasons for this is the collapse of several banks that had ties to the crypto industry. Silicon Valley Bank, Signature Bank, and Silvergate Bank in the United States are three examples of banks with crypto ties that recently collapsed. If we continue with the United States, the country has introduced two bills, the Blockchain Regulatory Certainty Act and the Financial Innovation and Technology for the 21st Century Act. These have helped to provide some definitions and the roles of various bodies in the US when it comes to managing cryptocurrencies.

In 2023, the European Union introduced the Markets in Crytpo-Assets Regulation and any company trading or issuing cryptocurrency needs a license. By January 2026, cryptocurrency service providers, regardless of the amount, will need the full name of the recipient when sending cryptocurrency. In addition, The International Organization of Securities Commissions has set out several recommendations for the global management of crypto assets.

On the face of it, this may seem like extra work for crypto traders and one of the many benefits of owning and trading cryptocurrencies was the lack of any regulatory framework. However, if it leads to further adoption of crypto by global financial markets, it will be a positive step.

Crypto as Legal Tender

A strong sign the global financial market has finally embraced crypto is the acceptance of digital currencies as legal tender. El Salvador and the Central African Republic are two countries that have taken the next major step in crypto acceptance by adopting Bitcoin as legal tender. There is likely to be more room for crypto innovation, market expansion, and acceptance in nations that have accepted cryptocurrency, such as Bitcoin, as legal tender.

The Path Forward for Crypto

Digital currencies and the crypto sector have undergone substantial changes in recent years. We have seen a broader adoption of cryptocurrency in the mainstream financial markets, and this will continue thanks to the development of easier-to-use interfaces. There have been setbacks in recent years, which cannot be denied but they were overcome, and that alone is a reason to be optimistic. With governments worldwide openly discussing crypto and introducing bills and legislation, it’s only a matter of time before blockchain technology is integrated into existing global financial systems.