Esteemed cryptocurrency magnate Mike Novogratz recently elucidated the ramifications of the latest market upheavals in his address.
A considerable transformation appears within the Democratic Party’s approach towards cryptocurrency, notably concerning Ethereum ETFs. According to Galaxy Digital’s CEO Mike Novogratz, this metamorphosis has radically upended the Ethereum ETF landscape.
Mike Novogratz Opines
“It feels as though someone from the Biden administration called and remarked, ‘We can no longer be perceived as anti-crypto,'” Novogratz conveyed to CNBC. This pronouncement follows a prolonged period of quietude from the Securities and Exchange Commission (SEC), which now fervently liaises with prospective ETF issuers, including Galaxy Digital, to prepare these offerings ahead of a pivotal May 23 deadline.
Speculation regarding this strategic reversal has already markedly influenced the market, with Ethereum appreciating by 20% since the news surfaced. Novogratz postulates that if the SEC’s shift in stance is indeed politically driven, “this is a tectonic shift” and “prices are poised for substantial elevation from this juncture.”
While influential figures within the Democratic Party, notably Massachusetts Senator Elizabeth Warren, have persistently scrutinized crypto, the Republican faction generally exhibits greater affinity towards the sector. This dichotomy has become particularly pronounced in recent weeks, with former President Donald Trump, historically a skeptic of cryptocurrency, recently expressing support for the industry should he regain office.
In a counter move, President Joe Biden has threatened to veto a motion to rescind SAB 121, a contentious crypto finance regulation, despite its bipartisan backing. With less than six months before they confront each other in the US presidential election, the impasse between these leaders has, in Novogratz’s words, “ignited a conflagration.”
With Trump leading Biden in the polls and crypto enterprises amassing over $150 million to bolster pro-industry candidates, often in pivotal states, Novogratz asserts that the Democrats’ aversion to crypto is increasingly untenable.
“It was Elizabeth Warren and a coterie of individuals who effectively commandeered the Democrats on this issue,” Novogratz remarked, noting that Democratic Senate leader Chuck Schumer, who voted for the repeal of SAB 121, likely told Warren, “Enough, this is becoming ludicrous.”
“There is no rationale for politicizing crypto, a mere technology,” Novogratz concluded.