Galaxy Digital’s founder and CEO, Mike Novogratz, just expressed his optimistic view on the direction of US cryptocurrency policy. Speaking on CNBC’s “Squawk Box,” Novogratz boldly projected that the crypto sector will see positive legislative improvements regardless of the winner of the next presidential contest.
Political And Market Dynamics
With prediction market data showing Trump ahead with almost 60% of votes in the Presidential Election Winner 2024 poll, compared to Biden’s 15%, the opposing methods to crypto regulation have affected voter choices.
The crypto market is still erratic notwithstanding political wrangle. Inspired by the two presidential contenders, mem coins are going into a negative trend. For example, whilst Joe Boden (BODEN) had dropped by 27.9% during the last 24 hours, Donald Tremp (TREMP) was down by 16.5% at the time of writing.
TREMP price down in the last 24 hours. Source: Coingecko
Trump Vs. Biden: Contrasting Approaches
Clear in his pro-crypto posture, former President Donald Trump even welcomes donations for his presidential campaign in cryptocurrencies. This stands in sharp contrast to the Biden administration, which many feel is shaped by an investigation of several cryptocurrency companies by SEC Chair Gary Gensler. Prediction markets show that the different opinions on cryptocurrencies between Biden and Trump seem to have influenced people more towards Trump.
“No matter who wins the next election, we’re going to get positive crypto legislation – I know that,” says @Novogratz pic.twitter.com/Vq8Xp1TEY0
— Squawk Box (@SquawkCNBC) July 2, 2024
A Bipartisan Vision For Crypto
Emphasising the need of bipartisan support for cryptocurrencies, Novogratz said, crypto must be “bipartisan.” A poll taken on behalf of Grayscale by Harris Poll also reflects this attitude, stressing the major part cryptocurrencies are playing in the presidential contest in 2024.
Industry Voices On Regulatory Challenges
Prominent crypto industry players like billionaire entrepreneur Mark Cuban and Ethereum co-founder Vitalik Buterin have spoken on the difficulties with US crypto policy.
Vitalik Buterin claims that a major problem with bitcoin control, especially in the US, is that initiatives with nebulous goals and uncertain return potential have minimal control. But programmes that offer unambiguous information about returns and user rights are labelled as securities and face more stringent rules. This results in a system whereby openness is punished, which Buterin contends stunts responsible innovation in the cryptocurrency field.
Building on Buterin’s observation, Mark Cuban contended that the primary obstacle is the existing legislative system. Cuban claims that although the current system is not suitable for the special qualities of cryptocurrency, crypto businesses are ready to register. Emphasising that the difficulty to register results from out-of-date rules rather than from the businesses themselves, he compared the situation to pushing a square peg into a round hole.
The junction of politics and crypto control will surely define the course of the sector as the 2024 presidential contest gets ready. Novogratz’s hope for favourable legislative amendments points to a turning moment for the crypto sector independent of the result of the election.
Featured image from BitIRA, chart from TradingView