During the CoinDesk 2024 Consensus event, which took place May 29-31 in Austin, Texas, Galaxy Digital CEO Mike Novogratz shared his perspectives on the evolution of institutional crypto and the future of digital assets. In a dialogue with CNBC’s MacKenzie Sigalos, Novogratz highlighted important political changes that are shaping the cryptocurrency market.

Novogratz highlighted a significant episode: the White House’s announcement of President Biden’s intention to veto the repeal of SAB 121, an accounting standard introduced by the SEC. This decision generated a marked reaction, especially among Republican politicians, with figures such as Donald Trump expressing support for encryption. “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 issue-focused voters.

Additionally, Novogratz noted growing bipartisan cooperation regarding cryptography. Influential senators from the Democratic Party, such as Schumer and Torres, have supported legislation favorable to the sector. This change in scenario was evidenced by the approval of FIT 21 in the Chamber, 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 fundamental. He predicts that with these changes, large custodians such as Bank of New York and State Street will begin custody of crypto assets, facilitating broader institutional adoption.

The discussion also addressed the impact of institutional involvement on the future of Bitcoin and Ether ETFs. Novogratz was optimistic, mentioning that institutions are gradually adapting to crypto, driven by customer demand. “Regulatory clarity is essential for the full participation of large financial entities,” he explained.

When talking about the macroeconomic outlook, Novogratz linked the resilience of the cryptocurrency market to broader economic trends, highlighting Bitcoin’s strength as a hedge 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 increased adoption by leading financial institutions.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.

Source: https://portalcripto.com.br/ceo-da-galaxy-digital-projeta-futuro-otimista-para-regulacao-cripto-nos-eua/

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