According to the CEO of Galaxy Digital, the United States is in dire need of open-minded cryptocurrency regulations from the upcoming Biden administration. Mike Novogratz.
“It tells you how powerful this bull market is […] They throw a lot at the system and it doesn’t actually affect the system. “
Nevertheless, for the cryptocurrency industry to truly succeed in the long run, more regulatory clarity is needed. Referring to the incoming Biden administration, Novogratz said:
“I hope, you know – we get a change of guard in 20 days – I hope we can get more open-minded regulators.”
President Trump’s departure from the White House is proving to be a difficult period for the cryptocurrency industry. Last week, the Treasury’s Financial Crimes Enforcement Network proposed new disclosure rules for self-hosted wallets.
In a sign that the Treasury was trying to block the legislation, it only offered a 15 day comment period i.e. much shorter than the typical 60 day period.
In another blow to some industry participants, the Securities and Exchange Commission, or SEC, is suing Ripple for allegedly selling an unrecorded security in the form of XRP tokens. The securities regulator made his case in a minutely detailed 71-page removal of Ripple released earlier this week.
The 70-page SEC complaint against #Ripple is a dismantling of breathtaking detail and scope. It’s not a petty or vindictive gesture: it’s a well-researched and well-articulated document claiming a plan of epic proportions.
– Jon Rice (@JonRiceCrypto) December 22, 2020
Novogratz and others believe that archaic cryptocurrency laws will stunt innovation and adoption in the United States, allowing rivals such as China to dominate the market. Ironically, this is one of the arguments that are used by Ripple to counter the SEC’s lawsuit.
In his interview with CNBC, Novogratz said that stubborn crypto laws have “a lot of unintended consequences,” adding that “it’s going to be pushing a lot of the cool stuff that is happening in crypto-offshore.”