The crypto industry in 2024 was defined by a stark divide between heroes and villains. Regulatory hurdles led by Gary Gensler and anti-crypto politicians cast a shadow over it while hackers exploited vulnerabilities, inflicting massive losses.

However, figures like Donald Trump, Coinbase, and Hester Peirce emerged as champions, advocating for clarity, innovation, and a crypto-friendly future.

The Villains: Who Undermined Crypto in 2024?

Gary Gensler and the SEC

In 2024, Gary Gensler, Chair of the US Securities and Exchange Commission (SEC), emerged as one of the most polarizing figures in the crypto industry. Known for his stringent regulatory stance, Gensler became a villain in the eyes of many crypto enthusiasts and industry players. His tenure was marked by aggressive enforcement actions and regulatory ambiguity that left crypto firms uncertain about their compliance requirements.

Under Gensler’s leadership, the SEC requested an unprecedented $2.6 billion budget to crack down on crypto markets, signaling a more aggressive stance against the industry. However, his heavy-handed approach began drawing significant backlash. A US judge sanctioned the SEC for misusing power in a crypto case, a moment that amplified concerns over regulatory overreach.

Gensler’s lack of clarity surrounding what constitutes a crypto security fueled further frustrations. While testifying before Congress, Gensler faced a tough grilling on the absence of clear rules, especially regarding Ethereum.

Notably, his threat to block a proposed Ethereum ETF garnered significant outrage. In response, even major crypto firms like Consensys launched lawsuits against the SEC, accusing Gensler of overstepping his authority.

Gensler’s missteps did not go unnoticed. Amid mounting criticism, Hester Peirce, dubbed “Crypto Mom” and one of the SEC’s commissioners, admitted flaws in the agency’s approach.

Gensler’s alignment with the Biden administration added fuel to the fire. Concerns peaked when Vice President Kamala Harris reportedly considered appointing Gensler as Treasury Secretary, leaving the crypto community on edge. Biden and Harris’s perceived hostility toward crypto cemented their status as antagonists in 2024.

Nonetheless, as calls for accountability grew louder, Gensler announced his imminent resignation, set for early 2025. His expected replacement, Paul Atkins, due to take office in January, is a more crypto-friendly candidate that has given the industry a glimmer of hope.

Hackers: North Korea and Beyond

Hackers continued to plague the crypto market in 2024, causing $2.1 billion in losses by the third quarter (Q3) alone. Among the most notable incidents:

1. Radiant Capital suffered a devastating $50 million hack, later traced to North Korean cybercriminals.
2. Hackers bypassed Coinbase’s AML systems, stealing $15.9 million.
3. Bitfinex Hack: After years of investigation, one of the perpetrators of the infamous Bitfinex hack was sentenced to five years for laundering $10 billion, alongside his wife, who got 18 months.
4. The SEC’s Twitter account was compromised, triggering a massive investigation that ended with an arrest.

These attacks, combined with North Korea’s evolving tactics, reflect the persistent threat of cybercrime in the crypto space. Even high-profile celebrities fell victim to crypto-related hacks.

Soccer stars Kylian Mbappé and Lionel Messi faced crypto scams. More recently, rapper Drake’s X account was hacked to promote a fraudulent meme coin.

The Heroes: Who Saved Crypto in 2024?

Donald Trump: The Crypto Champion

In stark contrast to anti-crypto forces, Donald Trump emerged as the crypto industry’s most prominent hero. Trump’s pro-crypto rhetoric ahead of the 2024 US presidential election galvanized the industry. He laid out a comprehensive blueprint for crypto regulation, promising to overturn restrictive rules and foster innovation.

Trump vowed to fire Gary Gensler and recently replaced him with Paul Atkins, signaling a seismic shift in the SEC’s approach. Trump’s vision extended further, including plans to establish a Bitcoin reserve as part of US financial policy.

He also committed to overhauling outdated crypto regulations beyond Gensler. As part of his commitments, Trump recently appointed David Sacks as a key figure to dismantle Operation Choke Point 2.0, a policy believed to target crypto-friendly financial institutions.

Additionally, Trump’s proposal for a D.O.G.E (Department Of Government Efficiency), involving influential figures like Elon Musk and Vivek Ramaswamy, added a humorous but symbolic touch to his crypto-forward campaign.

Coinbase: The Industry Whistleblower

Crypto exchange giant Coinbase played a crucial role in exposing unfair practices by US regulators. The company revealed that the FDIC had advised banks to limit crypto services.

The move raised concerns over institutional biases against digital assets. Coinbase’s advocacy efforts highlighted the need for a balanced regulatory approach to protect innovation.

In late October, Coinbase CEO Brian Armstrong highlighted the growing discontent within the crypto industry over what many see as excessive regulatory scrutiny. He also called out the agency for ambiguous enforcement actions under Gensler’s tenure.

Further, Armstrong highlighted some of the financial regulator’s contentious statements. Based on these, he demanded that the next SEC chair should withdraw what he calls “frivolous cases” and apologize to the American public.

“The next SEC chair should withdraw all frivolous cases and issue an apology to the American people. It would not undo the damage done to the country, but it would start the process of restoring trust in the SEC as an institution,” Armstrong posted.

Hester Peirce: The Voice of Reason

Within the SEC, Hester Peirce continued to champion crypto innovation. Her public acknowledgment of flaws in the agency’s enforcement actions served as a rare moment of introspection within the regulatory body. Peirce remained a ray of hope, advocating for clear rules and fair treatment for crypto firms.

“We knew ahead of time that there were legal questions about whether we have the authority to do what we did, but we moved forward,” Peirce said.

As Gensler prepares to step down and Trump’s vision gains momentum, 2025 promises to be a transformative year. The industry’s resilience in the face of adversity mirrors its potential to thrive, provided it navigates these challenges with strong leadership and clear regulation.