During the CoinDesk 2024 event, which took place from May 29th to 31st in Austin, Texas, Galaxy Digital CEO Mike Novogratz shared his insights on the evolution of institutional crypto and the future of digital assets. In a dialogue with CNBC’s MacKenzie Sigalos, Novogratz highlighted significant political changes that are shaping the cryptocurrency market.
Novogratz emphasized a significant episode: the White House’s announcement of President Biden’s intention to veto the repeal of SAB 121, an accounting rule introduced by the SEC. This decision has generated a remarkable reaction, especially among Republican politicians, with figures like Donald Trump expressing support for crypto. “This has mobilized the crypto community, making it a considerable political force,” said Novogratz. He added that there are currently more cryptocurrency holders in the US than dog owners, many of whom are focused on specific issues.
Furthermore, Novogratz noted a growing bipartisan cooperation regarding cryptocurrency. Influential Democratic senators such as Schumer and Torres have supported favorable legislation for the sector. This changing landscape was evidenced by the approval of FIT 21 in the House, a measure that seeks to establish regulatory clarity in the market.
Regarding the integration of traditional financial institutions into the crypto space, Novogratz believes that the repeal of restrictive accounting rules and the adoption of market infrastructure laws are crucial. He predicts that with these changes, major custodians like the Bank of New York and State Street will begin to custody crypto assets, facilitating broader institutional adoption.
The discussion also addressed the impact of institutional involvement on the future of Bitcoin and Ether ETFs. Novogratz expressed optimism, mentioning that institutions are gradually adapting to crypto, driven by client demand. “Regulatory clarity is essential for the full participation of large financial entities,” he explained.
When discussing the macroeconomic landscape, Novogratz linked the resilience of the cryptocurrency market to broader economic trends, highlighting Bitcoin’s strength as protection against inflation and currency devaluation.
Finally, when discussing Galaxy Digital’s future plans and the role of tokenization, Novogratz expressed enthusiasm for the transformative potential of this innovation, anticipating increasing adoption by major financial institutions.
Disclaimer: The views and opinions expressed in this article, by the author or anyone mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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