Michael Novogratz, the billionaire CEO of Galaxy Digital, predicted that many companies, including his own, would move more employees overseas as a result of the regulatory assault on the crypto business in the U.S., but he insisted that he won’t “flip the middle finger at the regulator.”The Block quoted a copy of Novogratz’s statements from the Piper Sandler Global Exchange & FinTech Conference last month as saying, “In the short run, we’re going to look to move people out of the U.S. overseas.”“And many businesses are.”
Since “we’ve got to get the US engaged” for cryptocurrency to truly realize its destiny, Novogratz is still making an effort to collaborate with American regulators.He added that Galaxy is “trying to engage with politicians and regulators every single day to get to a good place. And so I am, by no means going to flip the middle finger at the regulator.’’
Coinbase revealed last month that it had been awarded a license to run a trading platform in Bermuda, while cryptocurrency startup Gemini stated last month that it would expand its Singapore headquarters by recruiting more than 100 workers over the next year.
Some participants in the business are concerned about the U.S. Securities and Exchange Commission’s legal actions against companies like Coinbase and Binance, while others argue that a regulatory crackdown on the sector is necessary to establish the groundwork for a more secure future.According to The Block report, the transcript of Novogratz’s statements also showed that he was unconvinced by a draft law that would define when a token can go from being classified as a security to a commodity.Lower disclosure obligations would result from such a designation, which would likely be welcomed by the sector.
“It’s not going to pass,’’ he said. “But at least there’s a placeholder down.’’
The legislation might go to a vote as soon as next week.