Good morning! I'm Andy Rosen, senior assistant business editor at The Globe. Today, we embark on a journey to demystify the astonishing comeback of cryptocurrency. Let's dive in and explore the reasons behind its continued growth.

Unraveling the Mysterious World of Cryptocurrency

Bitcoin: A Popular Form of Cryptocurrency

Bitcoin, the flagship cryptocurrency, has once again captured the attention of investors worldwide. Last week, it soared past the $100,000 mark, a feat that seemed unimaginable when the pandemic crypto craze took a nosedive in 2022. Despite widespread doubts and public pronouncements of its frivolity, crypto has managed to thrive. It's a digital asset that uses blockchain technology to ensure the security and transparency of transactions. Some enthusiasts believe that money should be in the hands of the people, not controlled by banks. The underlying technology of cryptocurrency uses cryptography to safeguard data in a tamper-proof manner. While it can be used in the real world, the wild price swings often make people hesitant to spend it on daily items. Many simply hold onto their crypto, hoping for its value to increase.There are various reasons for Bitcoin's resurgence. The market has experienced several ups and downs over the years, but there are always those willing to invest, even in tough times. It offers a high-risk, high-reward investment opportunity for some.

The Crypto Era: Is It Over or Just Taking a Break?

Esmy Jimenez, from The Globe's “Money, Power, Inequality” team and Andy's personal finance buddy, questions why they are even discussing crypto again. After all, in 2022, crypto prices plummeted, and the collapse of FTX seemed to confirm many people's suspicions. But this year, it has skyrocketed once more. Andy explains that the crypto market is complex and cyclical. There are those who are truly passionate about it and believe in its potential. While there are scams and risks involved, the fact remains that there is a significant amount of money tied up in crypto. As of now, it's worth around $3.68 trillion, which is comparable to the value of Apple. Andy himself invested some of his spending money in Bitcoin in 2022, and it has paid off. But he emphasizes that luck and skill are difficult to distinguish.Not all crypto assets are the same. There are meme coins and other forms that can be extremely volatile and risky. It's important to be cautious and not get carried away by the hype.

The Pros and Cons of Cryptocurrency

On one hand, crypto offers a new way of thinking about money and financial transactions. It has the potential to disrupt traditional banking systems and give more power to the users. On the other hand, it is associated with scams and fraud. The anonymity provided by the technology makes it easier for bad actors to steal from unsuspecting investors. However, it's not just crypto that has these risks. Gambling on individual stocks or starting a business that fails can also lead to financial losses. Andy's personal rule is to not wager more than one can afford to lose. He and Esmy have most of their investments in target date retirement funds, which are a more stable option.The overturning of Roe v. Wade has had an impact on nonprofit abortion funds, with an increase in outside donations. This shows how different aspects of society are interconnected.In conclusion, cryptocurrency is a complex and controversial topic. While it has its merits and potential, it also comes with risks. It's important for investors to do their research and make informed decisions. As we continue to navigate this digital age, understanding cryptocurrency will become increasingly important.

Coinbase is making a significant claim by accusing an American financial regulator of impeding cryptocurrency banking activities. This accusation has sparked a lot of discussion and speculation within the crypto community. As reported by Coindesk on Friday (Dec. 6), a research firm working with Coinbase, History Associates, sued the Federal Deposit Insurance Corp. (FDIC) and Securities and Exchange Commission (SEC) in June. During the course of this litigation, History Associates gained access to internal FDIC communications that revealed the regulator's actions in halting lenders' efforts to offer or consider products and services in the digital assets space.

Coinbase's Battle for Crypto Banking Access

Internal FDIC Communications and the Crypto Sector

The crypto sector has long contended that it has been barred from accessing U.S. banking services. Coinbase Chief Legal Officer Paul Grewal argues that the FDIC documents clearly show that crypto businesses were shut out by the regulator. In one of the 23 letters shared by Coinbase, the regulator wrote, "We respectfully ask that you pause all crypto asset-related activity. The FDIC will notify all FDIC-supervised banks at a later date when a determination has been made on the supervisory expectations for engaging in crypto asset-related activity." This indicates a clear stance by the regulator and raises questions about the future of cryptocurrency banking in the United States.

For years, the crypto industry has been advocating for equal access to banking services. The fact that the FDIC appears to be taking a restrictive approach has led to concerns among crypto businesses and enthusiasts. It is crucial to understand the implications of these actions on the growth and development of the cryptocurrency market.

Coinbase's Chief Legal Officer's Perspective

Paul Grewal, Coinbase's Chief Legal Officer, expressed his views on the matter. He told CoinDesk that the letters show that this was not a conspiracy theory or rank speculation. There was a concerted plan by the FDIC to deny banking services to a legal American industry. This statement carries significant weight and highlights the seriousness of the situation.

Grewal's words should give everyone pause and make them consider the impact of regulatory actions on the crypto sector. It is essential to have a balanced approach that takes into account the potential benefits and risks of cryptocurrency while also ensuring regulatory compliance.

The Impact of the News on Crypto Regulation

The news comes at a crucial time as the face of crypto regulation in the U.S. is set to transform with the advent of President-elect Donald Trump's new administration. Trump has said that he plans to nominate a pro-crypto former SEC commissioner, Paul Atkins, to head the commission. This has left observers hopeful about the industry's future.

If the SEC under his leadership adopts a more cooperative crypto tone, it could open up new opportunities for Web3 innovation. Several high-profile lawsuits, such as those involving Coinbase and Ripple, are reshaping how crypto companies operate in the U.S. The shift in regulation will have a profound impact on the industry and its players.

PYMNTS has contacted the FDIC for comment but has not yet received a reply. The outcome of this situation remains uncertain, and it will be interesting to see how the regulatory landscape evolves in the coming months.