Galaxy Digital founder and CEO Novogratz sees Democrats’ crypto acceptance rising, warning that politicizing crypto could be a major misstep.
Galaxy Digital CEO Mike Novogratz recently shared with CNBC that he believes Democrats are gradually leaning toward accepting crypto. He tells CNBC that he has been trying to make them see reason, expressing that making crypto a political issue could be the most significant error in the last six years.
Novogratz believes there is no reason to treat cryptocurrencies a political issue, seeing it as it is a mere technology. This change, he suggests, could have major implications for the market and its regulatory environment.
.@Novogratz says he's sensing a move toward crypto acceptance from Democrats.
“I’ve been trying to talk sense. I was like, 'Guys, this could be the biggest own-goal of the last six years,’” he says. “There is no reason to make crypto, which is a technology, a political issue." pic.twitter.com/IszhoTs2v9— Squawk Box (@SquawkCNBC) May 21, 2024
Novogratz highlighted a sudden and notable change in attitude among Democrats in Washington, which he believes has completely altered the landscape for Ethereum ETF approval.
According to him, it feels like someone at the Biden White House made a call and said they can’t be the party against crypto anymore. He emphasized the potential impact of this shift, stating that if the SEC’s apparent change of heart is politically motivated, it represents a “seismic shift” that could drive prices significantly higher.
Political Context and Crypto’s Growing Acceptance
Historically, prominent Democrats like Massachusetts Senator Elizabeth Warren have been critical of cryptocurrencies, while Republicans have been more supportive. This divide has become increasingly evident, especially with former President Donald Trump’s campaign recently announcing that it will accept donations in cryptos including Bitcoin (BTC), Shiba Inu (SHIB), and XRP.
In contrast, President Joe Biden has maintained a cautious approach, recently threatening to veto a motion to repeal SAB 121, a contentious crypto accounting rule, despite bipartisan support for its repeal. This stance has added to the perception of a political divide on the issue.
Novogratz noted that this divide had almost become a “purity test,” with Republicans seen as pro-crypto and Democrats as anti-crypto. However, he believes the recent changes indicate that the Democratic leadership is reconsidering its position. He suggested that Senate Majority Leader Chuck Schumer might have urged a more pragmatic approach, telling Warren that continuing to oppose crypto was “becoming dumb.”
Impact on the Ethereum ETF and Market Predictions
The political landscape is particularly relevant as the SEC appears closer to approving a spot Ethereum ETF. Market analysts, including Miles Deutscher, predict significant price surges if the ETF gets the green light. Deutscher anticipates Ethereum could reach $6,446 by July 23, drawing parallels with Bitcoin’s price increase following its ETF approval.
Bitcoin itself has seen a bullish trend, recently peaking at $71,954 on May 21, fueled by speculation about the SEC’s potential approval of an Ethereum ETF. Analysts from Standard Chartered also project that such an approval could result in substantial inflows into Ethereum, ranging from $15 billion to $45 billion in the first year, potentially driving ETH prices to $8,000 by the end of 2024.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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