Top 10 Web3/Blockchain Legal Developments of 2024: A Year of Regulatory Shifts and Industry Milestones

In 2024, the legal landscape surrounding blockchain technology in the United States saw significant shifts, with new regulations, enforcement actions, and court rulings impacting the industry. As we enter 2025, it’s crucial to reflect on the Top 10 Web3/Blockchain Legal Developments of 2024 that shaped the market and regulatory frameworks.

1. SEC Targets Major U.S. Crypto Exchanges: The SEC’s lawsuits against Coinbase, Binance, and Kraken for alleged unregistered broker-dealer activities raised questions about regulatory reach and the definition of “securities” in the digital asset space. These lawsuits could have far-reaching implications for the industry.

2. Ripple Ruling Finalized: The SEC’s case against Ripple resulted in a civil penalty, marking a significant legal battle for the digital asset industry. The ongoing appeals could set precedents for future regulatory actions.

3. NFT Securities Status Under Scrutiny: The debate over whether NFTs are securities or consumer goods continued, with lawsuits and SEC actions highlighting legal complexities and deterring major brands from entering the NFT space.

4. Banking Regulators “Debanking” Digital Asset Participants: The alleged pressure on banks to stop servicing the crypto industry raised concerns and led to calls for fair access to banking for digital asset businesses.

5. M&A Activity in the Crypto Industry: A surge in mergers and acquisitions signaled market maturity and consolidation between traditional finance and decentralized finance sectors.

6. Major U.S. Crypto Bankruptcies: The collapse of crypto lenders and exchanges led to bankruptcy proceedings, with courts ruling on creditor and depositor claims amid rising crypto prices.

7. Protocol Developers Legal Battles: Courts affirmed that software developers are not liable for code misuse, highlighting privacy and cybersecurity concerns in the crypto ecosystem.

8. Judicial Scrutiny Over DAO Structures: Litigation targeting DAOs raised legal questions about liability and governance, with courts considering formal legal structures for DAO-related activities.

9. Congress Grapples with Crypto Legislation: Legislative efforts to provide regulatory clarity for the crypto industry saw progress in Congress, setting the stage for potential laws in the future.

10. Crypto Lobbying Efforts Pay Dividends: Intense lobbying efforts by crypto industry players influenced political decisions and could lead to bipartisan support for crypto legislation in the future.

As the industry prepares for potential changes in 2025, companies in the blockchain space should stay informed and adapt to evolving regulatory landscapes. The future holds opportunities for growth and innovation in the digital asset industry.