Galaxy Digital Holdings CEO Mike Novogratz said he is surprised that US authorities are interested in talking about regulating cryptocurrencies, but have not said anything about regulating artificial intelligence (AI). Novogratz added that by choosing to focus primarily on crypto regulation, the US government has it “completely backwards.”
‘A real technology that people care about’
Crypto billionaire and CEO of Galaxy Digital Holdings, Mike Novogratz, recently saying He is surprised that regulators only seem interested in “talking so much about cryptocurrency regulation and nothing about AI (artificial intelligence) regulation.” Novogratz also suggested that it would be “foolish” for the government to “cache up this industry because of Sam Bankman-Fried in his Bermuda shorts.”
Speaking on Galaxy Digital’s fourth quarter (Q4) 2022 shareholder update conference call, Novogratz, who has previously criticized Sam Bankman-Fried, insisted that he is not against any move that removes bad actors from the space. However, the CEO said he is not a fan of the US regulators’ approach, which he said is akin to “throwing out the baby with the bathwater.”
According to Novogratz, cryptocurrencies have become an important way to preserve value in a world where fiat currencies like the US dollar are continually being debased.
“Like, this is real technology that people care about. This is the real alternative to a way to save money in a world where it looks like the dollar will depreciate, or all Fiat will depreciate. The real way to monetize IP in the NFT (non-fungible token) space, and many others, are not tulips in 16th century Holland. This is a real technological breakthrough,” argued Novogratz.
The CEO added that by choosing to focus on cryptocurrencies without doing anything for AI, the US government “turned it completely on its head.”
The hesitations of Gary Gensler
Meanwhile, when asked what he sees as his main problem with what has been described as pushback from the US Securities and Exchange Commission (SEC), Novogratz responded by pointing to the vacillations of regulators and the president. of the SEC, Gary Gensler, when it comes to what constitutes a security. and what not The CEO also seemed to blame the SEC’s inability to clearly name or highlight the attributes that make a crypto asset a security for causing the deadlock that now exists between industry players and regulators.
Regarding what needs to be done to move the industry forward, Novogratz said:
You need really smart people thinking about how to take this new industry, create a set of rules that will allow legitimate players to carve out this industry in the US and grow it.
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