Stop worrying about Gensler’s crypto crusade and focus on bitcoin: Novogratz

Galaxy Digital CEO Mike Novogratz issued a vote of confidence for bitcoin during a Thursday morning CNBC appearance, saying he was more comfortable being long on the world’s largest digital asset now than he was six months ago. 

Novogratz also took the opportunity to tell SEC Chair Gary Gensler that crypto firms aren’t clear on the rules, and that the judge in the Ripple case agreed with that outlook.

“Gary has been saying, ‘come in, the rules are clear.’ The rules are absolutely not clear. The judge just basically said to the SEC, ‘you’re wrong.’”

In a mixed decision, the judge said Ripple’s programmatic sales of XRP were not unregistered securities offerings, while its institutional sales were. 

Read more: SEC on the defensive in effort to shift Ripple narrative

Novogratz then pivoted to US Rep. Ritchie Torres’ letter to the SEC in the wake of the Ripple ruling that tore into the regulator for its regulation by enforcement tactics. 

In summing up the letter from the New York Democrat, Novogratz said, “it’s time…for the White House, for the SEC, for Democrats to sit down with the Republicans and give us some damn legislation so we can get on with life.”

His anticipation for Congress eventually legislating on crypto is paired with his belief that bitcoin is too big of an idea to kill. It’s a currency that worries central bankers the world over, he said, and it’s a phenomenon that draws the ire of someone like Treasury Secretary Janet Yellen, who Novogratz said is trying to “defend the dollar as a global currency.”

Not only that, he signaled some excitement for a bitcoin ETF, a race that a dizzying number of firms are participating in. 

“Bitcoin, gold, silver, I put them all in the same bucket. Silver and gold trade great,” Novogratz said. “What drove bitcoin this year was retail…and now we’ve got an ETF on the way.”

Bitcoin’s performance is key for Novogratz since Galaxy Digital has been hosting Argo Blockchain’s mining rigs since December of last year. 

“Bitcoin’s not going away. You threw everything you could at it, and it’s up 80% on the year with interest rates higher. So the adoption cycle continues,” Novogratz said.

---

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily: Unpacking crypto and the markets.
• Empire: Crypto news and analysis to start your day.
• Forward Guidance: The intersection of crypto, macro and policy.
• 0xResearch: Alpha directly in your inbox.
• Lightspeed: All things Solana.
• The Drop: Apps, games, memes and more.
• Supply Shock: Bitcoin, bitcoin, bitcoin.