Bitcoin’s price has been holding steady around $95,000 following the Thanksgiving holiday, with low trading volume in the US market. There is a sense of optimism in the air regarding the future of the regulatory environment in the US. Former CFTC Chairman Chris Giancarlo believes that the SEC will drop its lawsuit against XRP developer Ripple Lab. SEC Chairman Gary Gensler is set to step down in January, and there is speculation that crypto advocate Paul Atkins could be nominated to lead the SEC. These developments are fueling hopes for a more stable regulatory landscape, which has been marred by lawsuits against various companies by the SEC.
The hope is that with a more stable regulatory environment, cryptocurrencies can be more widely adopted and integrated into the traditional financial system. RippleNet’s cross-border payment settlement solutions are gaining traction among banks looking to move away from the SWIFT system. Institutional investors have also shown interest in cryptocurrencies, with the launch of spot exchange-traded funds for Bitcoin and Ethereum in the US, totaling over $100 billion in net assets.
Despite these positive developments, the adoption of cryptocurrencies for comprehensive payments is still relatively low. DeFi protocols for payments have only generated around $291,000 in fees over the past 30 days, with a total value locked of $780 million. BitPay, a pioneer in crypto payment settlement, processed around 247,000 transactions in the last six months. In comparison, credit card companies in the US earned over $135 billion in fees in 2023, with Visa processing about 266 billion purchase transactions during the same period.
However, there is a sense of optimism in the air as regulatory restrictions are expected to ease, paving the way for broader adoption of Bitcoin and other cryptocurrencies. The technology and infrastructure are already in place to support the growth of cryptocurrencies, and the market is eagerly anticipating further developments in this space. As the regulatory environment becomes more favorable, we can expect to see increased adoption and integration of cryptocurrencies into the traditional financial system.
