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Mike Novogratz Hopes Biden Administration to Provide Favorable Crypto Regulations

UTC by Ibukun Ogundare · 3 min read
Mike Novogratz Hopes Biden Administration to Provide Favorable Crypto Regulations
Photo: jlhervàs / Flickr

Mike Novogratz said that investors remain confident in the top crypto asset, regardless of the Trump administration’s rules.

Ex-hedge fund manager and Galaxy Digital founder Mike Novogratz hopes that the incoming Biden administration would provide “open-minded” regulations for digital assets. A few months ago, the CEO, who is also a philanthropist, donated $200,000 to the Biden Action Fund.

Recently, the Trump administration proposed a new regulation for cryptocurrencies in the US. On the 18th of December, a US financial intelligence unit, The Financial Crimes Enforcement Network (FinCEN), revealed new regulations in the crypto space. The rules were issued to counter crypto-related criminal activities, affecting financial institutions and private wallets.

Novogratz Hopes for Open-Minded Regulators in Biden Administration

Under the new regulations, crypto traders involved in over $3,000 transactions on self-hosted crypto wallets would be identified. The regulation would also require crypto platforms to report more than $10,000 crypto transactions on unhosted wallets in 15 days.

Although the price of Bitcoin has been hovering around $23,000, the leading digital asset did not record any major loss since the FinCEN revealed the new regulation. At press time, Bitcoin is up 2.50% to $23,570.61.

Speaking on CNBC’s Squawk Box, Novogratz said that investors remain confident in the top crypto asset, regardless of the Trump administration’s new rule. He said:

“It tells you about how powerful this bull market is. They are throwing lots at the system, and it’s not actually impacting it.”

The Trump administration has been issued new legislation over the past weeks. Notably, the present administration will soon hand power over to the Biden administration.

Coinbase CEO Warns Against Burdensome Crypto Rules

Before now, Coinbase CEO Brian Armstrong had said that the present administration in the US may “rush out” unfavorable rules on crypto wallets. As Coinspeaker noted in an earlier report, the CEO highlighted the details of the regulations and explained the reverse effects if implemented. While speaking on the disadvantages of the new rule in a Twitter thread, Armstrong said it was “a bad idea.”

Also, Armstrong noted that the rule would be intruding on the financial privacy of crypto holders. He warned that the rule may also lead to reduced transactions from crypto financial institutions to self-custodial wallets.

In addition, the CEO said that the regulation may force US customers go after non-American crypto companies. In the Twitter thread posted in November, Armstrong said Coinbase and other crypto companies, along with investors, had contacted the US Treasury on the matter.

Furthermore, Novogratz acknowledged the increasing number of institutional investors in Bitcoin. Notably, there has been wider adoption of BTC among institutions in 2020. In a CNBC report, Novogratz stated that there has been “a real shift” among BTC investors. He added that the increasing number of Bitcoin institutional investors would make the asset less volatile. Novogratz also said that the institutional investors would push BTC to about $60,000 in 2021.

Altcoin News, Bitcoin News, Cryptocurrency news, News
Ibukun Ogundare

Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.

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