Regulation
Cryptocurrency regulation will improve regardless of US election winner, CEO says
Mike Novogratz, founder and CEO of Galaxy Digital, recently shared his positive outlook on the future of cryptocurrency regulation in the United States. Speaking to CNBC’s ‘Squawk Box,’ Novogratz predicted with certainty that regardless of who wins the next presidential election, the cryptocurrency industry will experience favorable regulatory changes.
Political and market dynamics
Contrasting approaches to cryptocurrency regulation have affected voter preferences: Forecast market data shows Trump leading with more than 60% of the vote in the 2024 presidential election winner poll, compared to 15% for Biden.
Despite these political maneuvers, the cryptocurrency market remains volatile. Memecoins inspired by the two presidential candidates are experiencing a bearish phase. For example, at the time of writing, Donald Tremp (TREMP) has dropped 16.5% over the past 24 hours, while Joe Boden (BODEN) has dropped 27.9% over the same period.
TREMP price down in the last 24 hours. Source: Coingecko
Trump vs. Biden: Contrasting Approaches
Former President Donald Trump has done his clear pro-crypto position, even accepting cryptocurrency donations to his presidential campaign. This is in stark contrast to President Joe Biden’s administration, which many believe is being influenced by SEC Chairman Gary Gensler’s stringent scrutiny of various cryptocurrency companies. Biden and Trump’s differing views on cryptocurrency 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 legislation on cryptocurrencies, I know it,” he says. @Novogratz photo.twitter.com/Vq8Xp1TEY0
— Squawk Box (@SquawkCNBC) July 2, 2024
A Bipartisan Vision for Cryptocurrencies
Novogratz stressed the importance of bipartisan support for cryptocurrency, saying that cryptocurrency needs to be “bipartisan.” This sentiment is echoed by a survey conducted by Harris Poll on behalf of Grayscale, which highlights the significant role cryptocurrency is playing in the 2024 presidential election.
Industry Voices on Regulatory Challenges
Prominent figures in the cryptocurrency industry, such as the co-founder of Ethereum Vitalik Buterin and billionaire entrepreneur Mark Cuban have weighed in on the challenges of cryptocurrency regulation in the United States.
According to Vitalik Buterin, a key problem with cryptocurrency regulation, particularly in the United States, is that projects with vague goals and unclear earnings potential are poorly supervised. However, initiatives that provide clear information about earnings and user rights are labeled as securities, subjecting them to more stringent regulations. This creates a situation where transparency is penalized, which Buterin says hinders responsible innovation in the cryptocurrency space.
Building on Buterin’s point, Mark Cuban argued that the current regulatory framework itself is the main obstacle. According to Cuban, cryptocurrency companies are willing to register, but the existing system is not adapted to the unique characteristics of cryptocurrencies. He compared the situation to forcing a square peg into a round hole, noting that the inability to register is due to outdated regulations, not the companies themselves.
As the 2024 presidential election approaches, the intersection of politics and crypto regulation will undoubtedly shape the industry’s trajectory. Novogratz’s optimism about positive regulatory changes suggests a turning point for the crypto industry, regardless of the election outcome.
Featured image from BitIRA, chart from TradingView