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Galaxy Digital CEO Mike Novogratz says that while regulators don’t have Bitcoin and Ethereum in their sights, they are targeting multiple areas of the crypto industry.
In a CNBC interview, Novogratz highlights the sectors that are likely to be impacted by the efforts of outgoing US Treasury Secretary Mnuchin to regulate the space.
“These regulations really are hitting the stablecoin market and they are not actually designed to go after Bitcoin and Ethereum per se; they are designed for the companies that traffic in them. And those are mostly companies in retail.”
Last week, the Financial Crimes Enforcement Network (FinCEN), a US Treasury Department agency, proposed rules that would mandate financial service providers in crypto to store, and in some cases, pass on information regarding funds sent to cryptocurrency wallets.
The crypto bull first emphasizes that the proposed rules should not have been put out just weeks before the current US Treasury Secretary paves the way for a new appointee.
“This stuff should have a proper 60-day comment period.”
On the impact of the proposed regulations, Novogratz says they will disadvantage the US if implemented.
“Quite frankly there are a lot of unintended consequences. This is anti-dollar. It boosts China in lots of ways. And it is anti-innovation. It is going to push a lot of the cool stuff that’s happening in crypto offshore.”
Novogratz reveals that he hopes the incoming administration of President-elect Joe Biden will be more friendly to the crypto industry.
“I’m hoping that with the change of guard in 20 days, I’m hoping we get some more open-minded regulators.”
The Galaxy Digital CEO adds that the continuing Bitcoin bull run in the face of regulatory fears is a sign of BTC’s strength.
“It tells you about how powerful this bull market is. They are throwing lots at the system and it’s not actually impacting it.”
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