Mike Novogratz, the head of Galaxy Digital, remains optimistic about the future of the cryptocurrency sector after Donald Trump's recent win in the American presidency. Novogratz told CNBC that Trump's administration may bring essential regulatory transformations in the crypto industry.
Novogratz suggested that the new administration's approach would be conducive to growth and innovation, laying the foundations for supportive leadership at financial regulatory agencies, including the OCC, FDIC, and SEC.
Novogratz's positivity is also an example of the industry's hope that Trump's policies will positively impact crypto. Some possible reforms may include extending the possibility of banks integrating digital assets into their portfolio and increasing the domestic mining industry. Such steps are likely to spark more investment in crypto, which could attract billions of dollars to the ecosystem.
Novogratz mentioned two potential candidates who could lead the SEC under Trump's administration: One of the current SEC Commissioners, Hester Peirce, and Dan Gallagher, the Chief Legal Officer of the Robinhood. He has experience and a professional background in regulation and a history of espousing policies favorable to business, as does his opponent.
Hester Peirce is one of the key public figures who have influenced the regulation of cryptocurrencies for the United States of America, especially due to her criticism of the new SEC under Biden. She has repeatedly expressed concern with the agency's enforcement-only approach to regulating industries, stating that clear guidance stifles innovation. Peirce advocates for tailored regulations that recognize the distinct nature of digital assets rather than applying traditional securities laws across the board.
Dan Gallagher, on the other hand, has championed a pro-business regulatory stance throughout his career. With experience as an SEC Commissioner from 2011 to 2015, Gallagher deeply understands securities regulation. His position at Robinhood has involved direct engagement with retail trading and crypto issues.
His reputation within Republican circles bolsters his candidacy, with some political analysts labeling him a "natural choice" for the SEC role. Gallagher's alignment with Trump's deregulatory agenda could further strengthen his chances.
Trump's expected approach to crypto regulation may lead to increased capital inflow into digital assets. Banks' ability to store cryptocurrencies as assets on their balance sheets would mean the much-needed institutional backing is in place. Given measures that may assist innovation and potentially ease restrictions, specialists expect increased crypto investments.