Mike Novogratz, the founder and CEO of Galaxy Digital, recently shared his positive outlook on the future of cryptocurrency regulation in the United States. Speaking to CNBC’s ‘Squawk Box,’ Novogratz said confidently predicted that regardless of who wins the next presidential election, the crypto industry will experience favorable regulatory changes.
Political and market dynamics
The contrasting approaches to crypto regulation are shaping voter preferences. Prediction market data shows Trump leading the poll for the 2024 presidential election with more than 60% of the vote, compared to 15% for Biden.
Despite these political maneuvers, the crypto market remains volatile. Memecoins inspired by the two presidential candidates are experiencing a bearish phase. For example, at the time of writing, Donald Tremp (TREMP) fell by 16.5% in the past 24 hours, while Joe Boden (BODEN) fell by 27.9% in the same period.
TREMP price down in the last 24 hours. Source: Coingecko
Trump vs. Biden: Contrasting Approaches
Former President Donald Trump has his pro-crypto position clear, even accept cryptocurrency donations to his presidential campaign. This is in stark contrast to President Joe Biden’s administration, which many believe is being influenced by SEC Chairman Gary Gensler’s tight control over various crypto companies. The different views on crypto between Biden and Trump appear to have swayed voters more toward Trump, as can be seen in prediction markets.
“No matter who wins the next election, we are going to have positive crypto legislation – I know that for sure,” he says @Novogratz photo.twitter.com/Vq8Xp1TEY0
— SquawkBox (@SquawkCNBC) July 2, 2024
A Bipartisan Vision for Crypto
Novogratz emphasized the importance of bipartisan support for cryptocurrency, stating that crypto needs to be “bipartisan.” This sentiment is echoed by a survey conducted by Harris Poll on behalf of Grayscale, which highlights the important role cryptocurrency will play in the 2024 presidential election.
Industry Voices on Regulatory Challenges
Prominent figures in the crypto industry, such as Ethereum co-founder Vitalik Buterin and billionaire entrepreneur Mark Cuban, have weighed in on the challenges of crypto regulation in the US.
According to Vitalik Buterin, a major problem with cryptocurrency regulation, particularly in the US, is that projects with vague goals and unclear potential returns face little oversight. However, initiatives that provide clear information about returns and user rights are labeled as securities, making them subject to stricter regulation. This creates a situation where transparency is penalized, which Buterin argues hinders responsible innovation in the crypto space.
Expanding on Buterin’s point, Mark Cuban argued that the current regulatory framework itself is the biggest hurdle. According to Cuban, crypto companies are willing to register, but the existing system is not suited to the unique characteristics of cryptocurrencies. He compared the situation to forcing a square peg into a round hole, and emphasized that the inability to register lies with the outdated regulations, not the companies themselves.
As the 2024 presidential election approaches, the intersection of politics and crypto regulation will undoubtedly determine the direction of the industry. Novogratz’s optimism about positive regulatory change suggests a turning point for the crypto industry, regardless of the election outcome.
Main image of BitIRA, chart from TradingView