How to sum up the crypto news 2023 events in a nutshell? Well, it’s impossible! If you happen to have been in a coma with your crypto stash and woke up just today, everything that happened in this industry will stun you. And honestly, it’s more on the enjoyable side than the unpleasant! Crypto in 2023? A mix of drama, legal confusion, and sharp market fluctuations!
Crypto 2023 Biggest News
Alright, ready to dive into the memory lane and reminisce with a tear in the corner of your eye about everything that happened over the year? Well, let’s go!
Bitcoin Hit an Annual Low of $16,680
Crypto review 2023 for cryptocurrency began with absolutely paradoxical events. The combined value of cryptocurrencies exceeded the monumental mark of a trillion-dollar milestone. Suddenly Bitcoin, amidst all the hype, has a sharp decline, hitting rock bottom at $16,680, causing some market concerns.
But the story took a turn for the brighter side. Still don’t switch, further; there’s more juicy news coming your way from the crypto universe!
SEC Shut Down Kraken’s Staking Program
In February 2023, the U.S. Securities and Exchange Commission (SEC) gave Kraken’s staking program quite the tap on the shoulder, nudging the company to shut it down for the US users and dish out a cool $30 million in compensation.
SEC labeled Kraken’s betting bonanza an “investment contract” that should’ve had a registration in their agency. It all came down to how the program worked: folks stashed their crypto goodies in Kraken’s vault, which then used them for various blockchain transactions. In return, users were rewarded.
Kraken waved a white flag at the SEC, neither admitting nor denying any wrongdoing. They agreed to pull the plug on the staking party. While the exchange packed up its staking services for Uncle Sam’s residents, they’re still cooking up alternative ways for potential rewards beyond U.S. borders.
Collapse of Silicon Valley Bank
On March 10, 2023, SVB, the tech-centric bank, did bankruptcy following a cash run from its vaults. This marked the third-largest bank bankruptcy in U.S. history, stealing the ‘biggest crisis since 2008’ spotlight.
The Federal Deposit Insurance Corporation (FDIC) swooped in, confiscated, and auctioned off SVB’s assets, saving most deposits up to $250,000. This crash ignited calls for tighter rules on tech-focused banks and strengthening oversight of the venture capital industry.
Tech world is still untangling from SVB’s fallout, with many startups facing funding challenges and adjusting to the changed financial landscape.
FTX Trial
The courtroom showdown starring FTX, a.k.a. ‘The United States vs. Sam Bankman-Fried,’ wrapped up on November 2, 2023. Sam, the maestro behind the now-bankrupt crypto exchange FTX, got the “guilty” stamp on all seven counts of pulling a fast one on clients and creditors.
He was accused of defrauding investors and clients of FTX and Alameda Research, his hedge fund subsidiary, through a series of schemes. The charges included wire fraud, securities fraud, money laundering, and conspiracy to commit these crimes.
Bankman-Fried’s staring down the barrel of a potential 110 years behind bars, with the final curtain call set for March 28, 2024. The verdict’s got some serious sequel potential for crypto regulations, poised to keep future shenanigans in check.
Gary Gensler Hate
Gary Gensler, the current head at the U.S. Securities and Exchange Commission, has become a controversial figure, drawing both praise and criticism, especially in the crypto crew. While some hail him as a thoughtful regulator to guarding investors, others give him the stink-eye, often chanting ‘Gary Gensler hate’ like it’s a new mantra.
Reasons for Gary Gensler’s Unpopularity:
Gensler’s leadership has taken action against several prominent cryptocurrency companies, including Ripple Labs, Binance, and Coinbase. These enforcement actions, while intended to protect investors, have met resistance from those who believe the SEC is overstepping its authority and unfairly targeting the industry.
CZ Resignation
So, CZ, also known as Chanpeng Zhao, threw in the towel as Binance’s head on November 22, 2023, following a whopping $4.3 billion settlement deal with the U.S. Department of Justice (DOJ). He even fessed up to breaking the U.S. anti-laundering money laws.
CZ’s presence at the helm during the legal proceedings could have cast a negative shadow on the Binance brand. His resignation aimed to toss the company away from the legal controversy.
Zhao previously expressed his desire to step down as CEO chair and focus on working on Binance. Well, legal troubles do have a way of speeding up one’s career decisions, don’t they? Despite all that, CZ remains the big cheese at Binance, pulling strings behind the scenes like a crypto puppeteer.
Ripple vs SEC
This legal showdown was back in December 2020. SEC took Ripple Labs to court, claiming their crypto coin XRP constituted an unregistered security offering without a permit.
The Securities and Exchange Commission argued that XRP, due to its centralized nature and dependence on Ripple Labs for development and market control, functioned more like a stock than a digital currency.
Ripple Labs has vehemently denied these allegations, saying that XRP is a utility token used for cross-border payments and not an investment contract.
Fast forward to Judge Analisa Torres stepping in, declaring a mixed verdict: XRP sales to some suits indeed broke securities laws, giving SEC a high-five. But public exchanges weren’t guilty of the same crime.
This ‘sort-of’ win for Ripple was like a game-changer, potentially cramping SEC’s style and giving XRP a glimmer of hope for its future.
Arbitrum launched its ARB token
Arbitrum dropped its very own $ARB token on March 23, 2023, as part of its transition to a decentralized autonomous organization (DAO) model. This was a major milestone for the Ethereum Layer 2 scalability solution, marking a shift to community decisions and giving users a slice of network ownership.
This token launch generated significant interest in Arbitrum, pulling in a swarm of newbies and developers like a crypto magnet. And moving to a DAO model gives the community a voice in the future of Arbitrum, crafting a more decentralized and transparent management structure. Just like many other cryptos, $ARB’s price rollercoasters, leaving investors on a thrill ride.
SEC filed lawsuits against both Binance and Coinbase
SEC vs Binance
SEC claims Binance parades around as an unregistered exchange, letting U.S. folks do their crypto cha-cha by buying, selling, and trading various digital coins, including their BNB token and the BUSD stablecoin.
In a November twist, the U.S. court gave the nod to a cosmic agreement between Binance and the CFTC. The exchange had to cough up a whopping $1.35 billion as a civil fine and return another $1.35 billion of those “naughty fees” they somehow got their hands on.
SEC vs Coinbase
SEC continues, now with Coinbase stepping into the legal ring, accused of playing the unregistered exchange game just like Binance.
SEC pointed fingers, saying, “Hey, Coinbase, you’ve been listing crypto gems that should’ve donned their ‘registered security’ suit before joining the party!”
Coinbase’s top legal officer, Paul Grewal, fired back on Elon Musk’s X, saying:
The assets we list on our platform are not securities and are not within the SEC’s jurisdiction.
Grewal joked that SEC might consider Pokémon cards, stamps, and Swiftie bracelets as securities too.
The SEC’s definition of securities – it’s like they’re on a treasure hunt and everything shiny looks like a security to them!
BlackRock filed for a spot Bitcoin ETF
BlackRock’s bid to cook up a Bitcoin-spot ETF in June 2023 had both traditional and digital finance. Why’s BlackRock’s paperwork so darn important, you ask? Well, listen up!
BlackRock – that whale of an asset manager, steering over $10 trillion in assets. Dipping its toes into Bitcoin through an ETF it’s a big deal, signaling this mammoth institution’s newfound crush on crypto. This move could pave the golden road for other big financial shots to jump on the bandwagon, possibly speeding up Bitcoin’s integration into the traditional money maze.
Bitcoin retakes $44,000
Starting the crypto year around the $16,700 mark, it has gone on an upward spiral. Here’s what made the crypto-price-o-meter hit such a bottom:
- The sudden TerraUSD stablecoin crash sent the whole crypto world into a tailspin, and Bitcoin wasn’t spared the ride.
- The whole “inflation and interest rates” sitcom in the US and other big economies made investors reduce their appetite for risky assets such as Bitcoin.
Additionally, Bitcoin showed its true colors. In the latter half of 2023, it started picking the crypto market up. Why? Well, those big financial cats like BlackRock, Valkyrie, and other legends tapped into the Bitcoin spot ETF business, ringing in a bit of optimism. Plus, rumor has it, that the prices were gearing up for the upcoming halving, set to crash the party in April 2024.
Finally, in late December 2023, Bitcoin successfully crossed the $44,000 mark, marking a major milestone on the road to recovery.
ETF Approval
The current year of rising hopes and ETF daydreams for Bitcoin. But guess what? No Bitcoin spot ETFs got an approval from the SEC within that year. However, during 2023 there was progress related to Bitcoin and Ethereum ETFs that are worth paying attention to.
Bitcoin ETF
Throughout the year, big financial tycoons like BlackRock, Grayscale Investments, and others were all up in the SEC’s grill, filing for Bitcoin spot ETFs. These documents fueled optimism and speculation about possible approval, as they signaled growing institutional interest in Bitcoin and potential mass adoption.
SEC turned the crypto market down a handful of these ETF applications, citing reasons like “not enough anti-manipulation safeguards” and “lack of transparent oversight” mechanism.
Ethereum ETF
Unlike Bitcoin’s tough luck with SEC, Ethereum scored a few future ETF approvals. These approvals splashed some Ethereum liquidity in the U.S. market and gave investors another shot at diving into the Ethereum ocean. Plus, they hinted that maybe SEC has a softer spot for Ethereum, compared to Bitcoin.
The warm reception to Ethereum’s future ETFs fired up the gossip mill about a potential Ethereum spot ETF approval in the future. But hey, just like Bitcoin, the when and how of that greenlight remains shrouded in mystery.
FAQ
What were the brightest and the darkest moments for the crypto this year?
Highlighting just one standout moment? How about the Wall Street titans like BlackRock, Fidelity, and Morgan Stanley strutting into the crypto sphere, showing off their growing institutional interest and building confidence in the long-haul potential of cryptocurrencies?
Remember the sudden drop of TerraUSD in May? That stablecoin collapse caused a market earthquake, resulting in significant losses for investors and rattling the trust in the whole crypto ecosystem.
Who were the crypto villains and crypto heroes of the year?
Founder of Terraform Labs, Do Kwon, found himself in a whirlwind of trouble following the explosive crash of the TerraUSD stablecoin in May 2023. Accused of leading investors astray and dabbling with unstable algorithmic mechanisms, Kwon has become a figure associated with significant financial losses and a damaged reputation in the crypto ecosystem.
Meanwhile, Ethereum’s co-founder, Vitalik Buterin, remained the golden boy of the crypto scene, hailed for his technical prowess and steering the Ethereum ecosystem forward. His focus on scalability and network stability garnered applause, solidifying his status as a key player in the industry’s future.
Loudest FUD and biggest Gossip of the year?
The year’s loudest FUD is that over 100 US senators, led by the unstoppable Senator Elizabeth Warren penned a letter to the Biden administration on October 17th. The letter sounded the alarm bells over how HAMAS and the Palestinian Islamic Jihad (PIJ) allegedly raked in millions through cryptocurrencies.
Seems like the letter packed a punch because, in less than 24 hours, the US Treasury Department announced sanctions against a bunch of individuals and entities reportedly backing HAMAS operations.
And the gossip of the year is Matt Damon leaped, into the spotlight as the ambassador for Crypto.com in October 2023. He starred in a series of ads, championing the platform and its services with the slogan ‘Fortune favors the brave.’
As a consequence of this, some doubted Damon’s genuine crypto know-how, accusing him of just cashing in on a lucrative gig.
Which crypto will boom in 2024?
Keep your finger on the pulse of the ever-changing crypto realm, scrutinize those predictions, and base your investment moves on your own risk radar and research. And let’s all chant for those positive Bitcoin prophecies because there’s this ironclad rule: when Bitcoin’s up, the whole crypto and blockchain gang gets a boost!
Will crypto recover in 2025?
If the widespread adoption of blockchain technology and cryptocurrencies keeps booming, it might just pump up the demand and send prices skyrocketing. This trend could get a boost from factors like the expanding uses of DeFi, NFTs, and Web3, along with bigger institutional investments.
Additionally, setting clearer, consistent rules across various jurisdictions could bring stability and attract fresh investors, possibly juicing up the market.
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