On December 13, 2024, the U.S. public markets are poised for significant transformation as regulatory changes are expected to facilitate greater access for cryptocurrency companies. Bitcoin (BTC) has surged by 40% since November 5, 2024, driven by favorable political developments and anticipation of a more lenient approach from the U.S. Securities and Exchange Commission (SEC) towards digital assets.
CoinCheck, a Japanese cryptocurrency exchange, has received approval for a public listing in the U.S. via a Special Purpose Acquisition Company (SPAC), marking a milestone as the first crypto exchange to go public since Coinbase's direct listing in 2021. This merger with Thunder Bridge IV is set to conclude soon, paving the way for more crypto entities to consider public listings.
The expected regulatory shift could broaden the crypto equity landscape, attracting public market investors and revitalizing venture capital interest. Currently, many crypto startups have moved offshore due to stringent regulations, but a more open public market may encourage U.S.-based entrepreneurial activity.
In another development, the Bank of England's Prudential Regulation Authority (PRA) has requested businesses to disclose their current and future crypto exposures by March 2025. This data will help the PRA calibrate its prudential treatment of crypto assets and monitor financial stability. The Basel framework, which outlines capital and risk management for banks' crypto exposure, will be a key consideration in this assessment.
With Bitcoin's price nearing $100,000 and significant investments from firms like Boyaa Interactive International and Metaplanet, the crypto market is witnessing a renewed interest and potential for growth.