Mike Novogratz Laments US Government’s Predilection For Discussing Crypto While Saying ‘Nothing About AI Regulation’ – Featured Bitcoin News
Galaxy Digital Holdings CEO Mike Novogratz has said he finds it shocking that the US government is interested in talking about regulating crypto, but has said nothing about regulating artificial intelligence (AI). Novogratz added that by choosing to focus mainly on crypto regulation, the US government has it “completely upside down.”
“A real technology that people care about”
Crypto billionaire and Galaxy Digital Holdings CEO Mike Novogratz recently said he finds it shocking that regulators only seem interested in “talking so much about crypto regulation and nothing about AI [artificial intelligence] regulation.” Novogratz also suggested that it would “be foolish” for the government to “cache this industry because of Sam Bankman-Fried in his Bermuda shorts.”
On Galaxy Digital’s fourth quarter (Q4) 2022 shareholder update conference call, Novogratz, who has previously criticized Sam Bankman-Fried, insisted he is not against any move to weed out bad actors from space. However, the CEO said he is not a fan of US regulators’ approach, which he said is akin to “throwing the baby out with the bathwater.”
According to Novogratz, crypto has emerged as an important way to preserve value in a world where fiat currencies like the US dollar are constantly depreciating.
“Like, this is a real technology that people care about. This is the real alternative to a way to save money in a world where it feels like the dollar will depreciate, or all Fiats will depreciate. The real way to make money on IP in NFT [non-fungible token] space, and much else – these are not tulips in Holland from the sixteenth century. This is a real technological breakthrough,” argued Novogratz.
The CEO added that by choosing to focus on crypto without doing anything about AI, the US government got it completely upside down.
Gary Genslers falters
Meanwhile, when asked what he sees as his main problem with what has been described as the US Securities and Exchange Commission (SEC) backlash, Novogratz responded by pointing to regulators and SEC Chairman Gary Gensler’s vacillation when it comes to what what constitutes a security and what does not. The CEO also appeared to blame the SEC’s failure to clearly name or highlight the characteristics that make a crypto-asset a security for causing the impasse that now exists between industry players and regulators.
As for what needs to be done to move the industry forward, Novogratz said:
You need really smart people thinking about how you take this new industry, create a set of rules that allow legitimate players to forge this industry in the US and grow it.
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