Mike Novogratz, founder and CEO of Galaxy Digital, recently expressed his positive outlook on the future of cryptocurrency regulation in the United States. Speaking to CNBC’s Squawk Box, Novogratz confidently predicted that regardless of who wins the upcoming presidential election, the cryptocurrency industry will see favorable regulatory changes.
Political and market dynamics
The contrasting approaches to crypto regulation have affected voter preferences, with prediction market data showing Trump leading with more than 60% of the vote in a 2024 presidential election winner poll, compared to 15% for Biden.
Despite these political maneuvers, the cryptocurrency market remains volatile. Memecoins inspired by presidential candidates are experiencing a bearish phase. For example, at the time of writing, Donald Trump (TREMP) is down 16.5% in the last 24 hours, while Joe Budden (BODEN) is down 27.9% over the same period.
TREMP price has been down over the past 24 hours. Source: Coingecko
Trump vs. Biden: Two Contrasting Approaches
Former President Donald Trump has made his pro-crypto stance clear, even accepting crypto donations for his presidential campaign. This stands in stark contrast to President Joe Biden’s administration, which many believe is influenced by SEC Chairman Gary Gensler’s strict oversight of various crypto companies. The differing views on cryptocurrencies between Biden and Trump appear to have swayed voters more toward Trump, as reflected in prediction markets.
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“No matter who wins the next election, we will get positive crypto legislation – I know it,” says @Novogratz pic.twitter.com/Vq8Xp1TEY0
— Squawk Box (@SquawkCNBC) July 2, 2024
A Bipartisan Vision for Cryptocurrencies
Novogratz emphasized the importance of bipartisan support for cryptocurrencies, saying that crypto needs to be “bipartisan.” That sentiment is echoed in a Harris Poll survey conducted on behalf of Grayscale, which highlights the important role cryptocurrencies will play in the 2024 presidential election.
Industry Views on Regulatory Challenges
Prominent figures in the crypto industry, such as Ethereum co-founder Vitalik Buterin and billionaire entrepreneur Mark Cuban, have highlighted the challenges of crypto regulation in the United States.
According to Vitalik Buterin, one of the main issues with cryptocurrency regulation, especially in the United States, is that projects with vague purposes and unclear return potential face little oversight. However, initiatives that provide clear information about returns and user rights are classified as securities, making them subject to stricter regulations. This creates a situation where transparency is penalized, which Buterin claims hinders responsible innovation in the crypto space.
Building on Buterin’s point, Mark Cuban claimed that the current regulatory framework itself is the main obstacle. According to Cuban, crypto companies are willing to register, but the current system is not suited to the unique characteristics of cryptocurrencies. He likened the situation to forcing a square peg into a round hole, asserting that the inability to register lies with outdated regulations, not the companies themselves.
With the 2024 presidential election approaching, there’s no doubt that the intersection of politics and crypto regulation will shape the trajectory of the industry. Novogratz’s optimism about positive regulatory changes signals a turning point for the crypto industry, regardless of the election outcome.
Featured image from BitIRA, chart from TradingView