Galaxy Digital CEO Predicts Delay in U.S. Crypto Regulation Until After 2024 Elections
Michael Novogratz, the CEO of Galaxy Digital Holdings, has expressed doubt about the progress of cryptocurrency regulations in the U.S. before the 2024 presidential elections. This skepticism comes amidst speculation about the approval of the first U.S.-based Bitcoin exchange-traded fund (ETF) by the SEC.
Novogratz mentioned during the company’s Q3 earnings call that any new regulatory decisions are unlikely before the election, but there could be significant progress afterward, given the knowledgeable individuals in Washington.
He also suggested a potential pivot in the Federal Reserve’s interest rate policy in the upcoming year, along with expected regulatory clarity, which could drive expansion in the crypto sector over the next 18 months. Bloomberg Intelligence analysts believe the SEC may approve a spot Bitcoin ETF by Jan. 10.
Galaxy’s Financial Performance and Prospects
Galaxy Digital disclosed a significant third-quarter net loss of $94 million, attributed to token valuation downturns and market volatility dips. Despite a 70% surge in trading volumes, trading revenue dipped to $14 million. However, lending ventures experienced growth with an average loan book size of $553 million.
In October, Galaxy saw a brighter financial picture with $124 million in pretax income and $24 million in trading revenue due to strategic market positioning and a resurgence in cryptocurrency prices.
Hot Take: Galaxy Digital’s CEO Foresees Delay in U.S. Crypto Regulation
The delay in U.S. crypto regulation until after the 2024 elections could impact market sentiment and investment decisions. However, Galaxy Digital’s resilience and strategic initiatives position it well for potential growth amid regulatory developments and market shifts.
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