Forbes 2024 Prediction: Improved Cryptocurrency Accounting Rules, USDT to be Delisted?

The author of Forbes' Digital Assets column has presented five 2024 crypto predictions, boldly predicting that USDT will choose between a full audit and delisting risks.

1. Improvement in Cryptocurrency Accounting Rules

The Financial Accounting Standards Board (FASB) released the first set of cryptocurrency accounting rules in September this year, which will be effective for public and private companies with fiscal years beginning after December 15, 2024.

The new rules require companies holding cryptocurrencies like BTC and ETH to be valued at fair market value to accurately reflect gains and losses from holding these assets.

Michael Saylor, the founder of MicroStrategy, a company holding a significant amount of Bitcoin, commented on this:

The upgrade in cryptocurrency accounting standards by FASB will encourage global companies to adopt BTC as a reserve asset.

FASB's adoption of fair value accounting standards by year-end benefits companies holding cryptocurrencies such as MicroStrategy.

2. First Physical Bitcoin ETF Launched

Several fund management firms have submitted applications for a physical Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC), with many analysts predicting approval by 2024.

This will further solidify the legitimacy of Bitcoin and reduce market volatility.

Keep an eye on the 13 ETFs under review:

Bitcoin Physical ETF Update: SEC meets with firms like BlackRock, optimistic about approval by 1/10 deadline

3. USDT Facing Delisting?

Forbes believes that 2024 will be a critical year for USDT due to increasing regulatory scrutiny. Tether, the issuer, will need to decide whether to undergo a comprehensive audit or face a higher risk of delisting.

Paolo Ardoino, the CEO of Tether, attributed the lack of audit to calls from U.S. lawmakers for audit firms to avoid crypto-related clients, especially after the FTX incident.

Additionally, in a recent report by credit rating agency S&P Global, USDT and DAI were rated 4, considered low, while USDC received a strong 2 rating.

S&P Stablecoin Rating Report: USDC rated highest, USDT barely scores 4 points

4. Traditional Financial Institutions Embrace Tokenized Payments

Forbes pointed out that large financial institutions, including JPMorgan Chase, have started pilot projects for tokenized payments on enterprise blockchains, believing this will drive adoption among traditional financial institutions.

Exploring JPMorgan: Digital Asset Platform Onyx to test tokenized wealth management services with Avalanche

5. Bitcoin Surpasses $60,000

Lastly, Forbes conservatively predicts that the price of Bitcoin will surpass $60,000 in 2024, without emphasizing a break above the previous high of $69,000. They believe that with the influx of institutional investors, the wild volatility seen in the past will be less frequent.