Crypto News: Renowned billionaire investor and founder of Galaxy Digital, Mike Novogratz, recently shared his insights on the ongoing legal battles surrounding major crypto exchanges. According to Novogratz, he anticipates further lawsuits of similar nature by the US Securities & Exchange Commission (SEC) against crypto businesses operating in the United States and protracted legal processes along with it.
Mike Novogratz Predicts Delays In Legal Battles
Speaking at a fintech investor conference hosted by Piper Sandler on Wednesday, Novogratz commented that the cases against Coinbase and the Binance exchange, probably won’t be litigated for a few months. “There’s not going to be quick closure on any of this. It makes it very difficult to figure out what you should do”, he added.
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Additionally, Novogratz highlighted that the SEC’s lawsuits have categorized numerous major tokens as securities. However, notable cryptocurrencies such as Bitcoin, Ethereum, and the stablecoin USD Coin were exempted. Speaking on this context, the 58-year-old crypto advocate was quoted as saying:
So if you take the opposite, three-quarters of our industry, even in the US, is available to play.
Uncertainty Brews As Major Firms Face Challenges
The SEC has recently intensified its regulatory actions against the crypto industry, targeting prominent players through successive lawsuits. On Tuesday, the financial watchdog accused Coinbase of operating an illegal digital asset exchange and functioning as an unregistered broker and clearing agency.
A day earlier, the SEC sued Binance Holdings Ltd., alleging mishandling of customer funds, misleading investors and regulators, and violation of securities regulations. Additionally, the former Chief Compliance Officer of Binance was accused of willfully violating US regulations.
Novogratz Claims Institutional Interest Has Dipped
Novogratz emphasized that institutional players are currently hesitant to engage in the crypto space, particularly in the United States. He noted that the industry is witnessing consistent daily buying from retail hodlers who are accumulating cryptocurrencies through popular apps like Square and Robinhood as well as smaller brokerages.
Galaxy Digital, under Novogratz’s leadership, is increasingly shifting its operations offshore in response to the regulatory challenges. Novogratz believes that it’s high time for the crypto industry to demonstrate its practicality and usefulness, especially with the growing interest in artificial intelligence.
He concluded his statement by saying that he does not believe that the crypto narrative is going to garner attention any time soon unless there’s an app on the phone which delivers on the Web3 promise.
Also Read: Bitcoin Nears $27,000, XRP, Dogecoin Rise Over 4% Despite SEC Suing Crypto Exchanges
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