Consensus 2024: Mike Novogratz Spoke Bluntly about Regulatory Landscape
For Novogratz, what matters most is how regulatory shocks affect the industry.
In an increasingly digitalized and disruptive world, there is one event that stands out as the epicenter of innovation and exchange of ideas in the field of cryptocurrencies, blockchain and web3. It is Consensus 2024, an unparalleled conference that brings together the key players of this revolutionary community.
On the second day of Consensus 2024, renowned entrepreneur and founder of Galaxy Investments Partners, Mike Novogratz, spoke about the regulatory situation and expectations of the industry. Novogratz, who is both a great supporter and a fierce critic of the industry, delivered his views in a clear and straightforward manner.
The importance of the current regulatory pressure is well known and emphasized by Novogratz. Despite his center-left political leanings, he said he has donated to Republican candidates. In fact, for Novogratz, the most important thing is the way regulatory pressure affects the industry. The same he defends, despite some stumbles such as LUNA/Terra and even the collapse of the FTX exchange in 2022.
More Left Than Right, But Definitely Center, Mike Novogratz Told Consensus 2024
Novogratz asserts that there has been a change in the way politics is being handled lately. This change is largely related to the importance that the crypto sector has taken on in the minds of voters. In an election year like this one, both parties have made it a point to educate voters about the industry.
“It’s a bipartisan issue,” Novogratz commented, referring to this change in trend and the “sudden” interest in not hurting the industry. For its part, the regulatory evolution of cryptocurrency has satisfied the aspirations of institutional investors, undoubtedly the sector that has benefited most from the bitcoin ETF so far.
In addition, it highlights the surprising evolution of the attitude of Gary Gensler, current head of the U.S. Securities and Exchange Commission, who was previously criticized by the industry for his comments and investigations. This unexpected shift has raised suspicions in Novogratz’s mind, suggesting that he may have received a directive from the White House to change his approach.
Spending Never Seen Before, and Interest That Keeps Pushing
One of Novogratz’s biggest red flags is the current level of government spending. Concerned and dismayed, he explained that the government spends over 6% to 7% of the gross domestic product each year. Deficits of this nature lead to an inflationary trend that severely hurts the dollar. Much of this spending is due to the growing military budget, spending that Galaxy’s CEO finds unheard of.
He also assured that the mentality of “I don’t care who wins, we need to spend a lot on armaments to fight China and Russia” will end up negatively affecting the economy, especially those who adhere to the old scheme of investment and finance. For this reason, he invited everyone to investigate and, in some cases, consider investing in much more stable assets.
This impressive level of spending, combined with significant financial support from the cryptocurrency industry, seems to be paying off. According to Novogratz, entrepreneurs in the sector are constantly pushing for clearer regulation and legal reforms. He highlighted the case of Brian Armstrong, CEO of Coinbase, who is known for his repeated calls for regulatory reform.
Novogratz notes an apparent calm, commenting that actions against the cryptocurrency industry are “the least American thing” he has seen in recent times. This is in reference to the political attacks that have constantly questioned the stability of the industry in the country. However, he asserts that both he and many politicians believe in the need to change this perception.
By Leonardo Perez