- Galaxy Digital CEO, Mike Novogratz, challenges the SEC’s claim of ‘clear rules’ post Ripple verdict.
- Despite regulatory uncertainties, Novogratz remains bullish on crypto’s institutional engagement.
Novogratz Points to SEC’s Ambiguous Rules Amid Ripple Controversy
Galaxy Digital’s vanguard, Michael Novogratz, has consistently taken issue with the US Securities and Exchange Commission (SEC) and its modus operandi. The recent flare-up around Ripple, wherein the SEC alleged the sale of its cryptocurrency XRP as an unregistered security since 2020, only intensified his critique.
In a candid shareholder discourse, Novogratz expounded,
“The Ripple case is more than a mere industry squabble. While SEC’s Gary Gensler consistently underscores ‘clear rules’, a federal judge’s stance on the Ripple case resonates with a contrasting narrative. The regulatory landscape isn’t as transparent as touted.”
Drawing attention to the SEC’s blurred approach, he cited Congressman Richie Torres. Torres has been vocally advocating for bipartisan cooperation, urging both political spectra, the White House, and the SEC to sculpt coherent crypto regulations.
Novogratz, sensing the wind’s direction, reckoned that legislative momentum has noticeably accelerated since the onset of the Ripple dispute. Illustrating crypto’s inherent resilience, he jovially referenced a Chumbawamba hit from the late ’90s, drawing parallels between the song’s lyrics,
“I get knocked down, but I get up again”
and the undying spirit of the crypto community.
Novogratz’s Investment Decisions Raise Eyebrows
Notably, June witnessed Novogratz’s revelation of being an early Ripple investor, despite never liquidating any shares. This sparked discussions, especially among the XRP enthusiasts. One notable query came from Yassin Mobarak, the helm at venture capital firm Dizer Capital. Mobarak was baffled by Novogratz’s enthusiasm for ETH and his simultaneous XRP skepticism, given his investments in the very company pioneering XRP.
While the global crypto community anticipates refined regulatory clarity, particularly from the US, the industry’s vigor remains undeterred. Novogratz expressed elation over the resurgence of retail investors in the crypto sphere and its affiliated stocks. He observed,
“Institutional players are making notable re-entries – be it futures, stocks, or more structural investments. These are precursors indicating their preparedness for the impending digital, or rather, crypto epoch. Such signs are nothing short of promising.”