Galaxy Digital founder and CEO Mike Novogratz lately shared his optimistic view on the way forward for cryptocurrency regulation in america. In an interview with CNBC’s “Squawk Field,” Novogratz confidently predicted that the crypto trade will expertise favorable regulatory adjustments regardless of who wins the subsequent presidential election.
Political and market dynamics
Contrasting approaches to cryptocurrency regulation have influenced voter preferences, with prediction market knowledge exhibiting Trump main with greater than 60% of the vote in 2024 presidential election winner polls, in comparison with Biden’s 15%.
Regardless of this political manipulation, the cryptocurrency market stays unstable. The meme coin impressed by the 2 presidential candidates goes via a bearish part. For instance, as of this writing, Donald Tremp (TREMP) is down 16.5% up to now 24 hours, whereas Joe Boden (BODEN) is down 27.9% in the identical interval.
TREMP value down within the final 24 hours. Supply: Coingecko
Trump vs. Trump. Biden: A comparative strategy
Former President Donald Trump has made his pro-crypto stance clear and even accepted cryptocurrency donations for his presidential marketing campaign. That is in stark distinction to President Joe Biden’s administration, which many consider has been influenced by SEC Chairman Gary Gensler’s intense scrutiny of assorted cryptocurrency corporations. As mirrored in prediction markets, the differing views on cryptocurrencies between Biden and Trump look like swaying voters towards Trump.
“Regardless of who wins the subsequent election, we’re going to get optimistic crypto laws — I do know that,” stated @novogratz pic.twitter.com/Vq8Xp1TEY0
— Squawk Field (@SquawkCNBC) July 2, 2024
A Bipartisan Imaginative and prescient for Cryptocurrency
Novogratz emphasised the significance of bipartisan assist for cryptocurrencies, stating that cryptocurrencies require “bipartisan assist.” This sentiment was echoed by a survey performed by Harris Ballot on behalf of Grayscale, which highlighted the essential function cryptocurrencies will play within the 2024 presidential election.
Business voices on regulatory challenges
Huge names within the crypto trade, together with Ethereum co-founder Vitalik Buterin and billionaire entrepreneur Mark Cuban, have weighed in on the challenges of U.S. crypto regulation.
Vitalik Buterin stated the important thing drawback with cryptocurrency regulation, particularly in america, is that initiatives with obscure functions and unclear return potential are barely regulated. Nonetheless, initiatives that present clear details about returns and person rights are labeled as securities, subjecting them to stricter regulation. This creates a scenario the place transparency is penalized, which Buterin believes hinders accountable innovation within the cryptocurrency house.
Based mostly on Buterin’s standpoint, Mark Cuban believes that the present regulatory framework itself is the principle impediment. Cuban stated cryptocurrency corporations are keen to enroll, however current techniques usually are not suited to the distinctive traits of cryptocurrencies. He likened the scenario to placing a sq. peg in a spherical gap, stressing that the explanation for the shortcoming to register lay with outdated rules reasonably than the corporate itself.
Because the 2024 presidential election approaches, the intersection of politics and cryptocurrency regulation will undoubtedly form the trajectory of the trade. Novogratz’s optimism about optimistic regulatory adjustments means that whatever the consequence of the election, the crypto trade will attain a turning level.
Featured picture from BitIRA, chart from TradingView