See More

Crypto Bull Mike Novogratz Hopes for ‘Embracing’ Regulator

2 mins
Updated by James Hydzik
Join our Trading Community on Telegram

In Brief

  • Despite some fear of a government crackdown, Bitcoin has been resilient through the economic crisis this year.
  • Government regulation would be bad for the dollar and domestic innovation, Novogratz told CNBC.
  • He hopes for open-minded regulators after Biden’s inauguration.
  • promo

Billionaire Mike Novogratz remains bullish on crypto and hopes for a more crypto-friendly presidential administration.

No Fear Novogratz

Despite the Trump administration’s threats of new crypto regulations, Michael Novogratz, Galaxy Digital CEO, believes Bitcoin is remaining strong. He said the price rise of the past few days demonstrated the resilience of the bull market.

“They are throwing a lot at the system,” he told CNBC’s “Squawk Box.” “It’s not actually impacting it.”

BTC 5 Day Chart: TradingView

Recently, Financial Crimes Enforcement Network (FinCEN), a division of the US Treasury, proposed disclosure rules for private wallets and financial institutions. The proposed regulation fights crime and money laundering revolving around cryptocurrency.

Though this was considered a threat, Bitcoin has continued to rise, reaching about ~$28,000 briefly on Dec 27, 2020. Likewise, fear of a crackdown may explain why so many are moving their crypto in cold storage wallets and off semi-regulated exchanges.

Under the new rules, independent crypto owners must identify themselves on transactions of more than $3,000. Platforms must report transactions of $10,000 or more.

Bad for business

Novogratz was nonchalant on “Squawk Box”. This style of regulation was a common approach of the Trump administration, he said. Novogratz also said that tightening regulation could send innovation and money out of the country.  

He also hoped that the tune of the government would change when President-elect Biden takes office:

 “I’m hoping, you know — we get a change of the guard in 20 days — I’m hoping we can get some more open-minded regulators.”

The billionaire is a frequent donator to Democratic politicians, CNBC reported.

Meanwhile, the Treasury Department has not yet implemented the new rules. It offered a 15-day comment period for the public to suggest changes. Novogratz and Coinbase both asked for more time.

The former hedge-fund manager also slighted Trump for the poor timing of the new rules, which could be reversed with a change in power:

 “It’s kind of endemic of the Trump administration trying to jam in legislation, and quite frankly there are a lot of unintended consequences,” he said.

There has been a huge uptick in institutional investors recently, and Novogratz counts his clients among them. What’s more, retail investing seems to have fueled the epic holiday rise of Bitcoin’s price. Additionally, interest does not even seem as high as it was in 2017’s bull run.

Still Bullish on crypto

Despite the threat of legislation, the investor remains very bullish. In the past, Novogratz has said the new year will bring Bitcoin near to $60,000. He also believes less volatility will help attract larger investors.

The only downside, he said, is that technology could be stifled. Regulation and predictability could bring in money, but it could also encourage visionary developers to look elsewhere in the world to stretch their crypto muscles. What he’d love to see is a regulator who finds a happy medium:

“I would love an administration, I would love a regulatory framework that embraces that, not fights that.”

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024



In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Harry Leeds
Harry Leeds is a writer, editor, and journalist who spent much time in the former USSR covering food, cryptocurrencies, and healthcare. He also translates poetry and edits the literary magazine