Regulation
Cryptocurrency Regulation Should Improve Regardless of Who Wins US Election, 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 confidently predicts that no matter who wins the next presidential election, the crypto industry will see favorable regulatory changes.
Political and market dynamics
Contrasting approaches to cryptocurrency regulation have impacted voter preferences, with prediction market data showing 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 both presidential candidates are experiencing a bearish phase. For example, at the time of writing, Donald Tremp (TREMP) is down 16.5% over the past 24 hours, while Joe Boden (BODEN) is down 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 made his the pro-crypto position is clear, even by accepting cryptocurrency Donations to his presidential campaign are in stark contrast to President Joe Biden’s administration, which many see as influenced by SEC Chairman Gary Gensler’s tight oversight of various cryptocurrency companies. Biden’s and Trump’s differences on cryptocurrencies appear to have swayed voters more in Trump’s favor, as reflected in prediction markets.
“No matter who wins the next election, we’re going to have positive crypto legislation – I’m sure of it,” says @Novogratz pic.twitter.com/Vq8Xp1TEY0
— Squawk Box (@SquawkCNBC) July 2, 2024
A Bipartisan Vision for Crypto
Novogratz stressed the importance of bipartisan support for cryptocurrencies, saying that cryptocurrencies need to be “bipartisan.” This sentiment is echoed by a survey conducted by Harris Poll on behalf of Grayscale, which highlights the important role cryptocurrencies play in the 2024 presidential election.
Industry voices on regulatory challenges
Prominent figures in the crypto industry, such as Ethereum co-founder Vitalik Buterin and billionaire entrepreneur Mark Cuban, weighed in on the challenges of regulating cryptocurrencies in the United States.
According to Vitalik Buterin, one of the main problems with cryptocurrency regulation, especially in the United States, is that projects with vague goals and unclear return potential face little oversight. In contrast, initiatives that provide clear information about returns and user rights are labeled as securities, subjecting them to stricter regulation. This creates a situation where transparency is penalized, which Buterin believes stifles responsible innovation in the cryptocurrency space.
Building on Buterin’s arguments, Mark Cuban argued that the current regulatory framework 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 pushing a square peg into a round hole, emphasizing that the inability to register is due to outdated regulations, not the companies themselves.
As the 2024 presidential election approaches, the intersection of cryptocurrency policy and regulation will undoubtedly shape the trajectory of the industry. Novogratz’s optimism about positive regulatory change suggests a turning point for the cryptocurrency industry, regardless of the election outcome.
Featured image from BitIRA, chart from TradingView