Galaxy Digital CEO Mike Novogratz Says White House Has Flipped Its Stance on Crypto

By Jody McDonald May 22, 2024 In ETF, Ethereum, Market Analysis
  • Galaxy Digital CEO, Mike Novogratz, says the Democratic Party appears to be changing its stance on cryptocurrency in an attempt to neutralise the issue leading into the federal election later this year.
  • Novogratz suggests the change in tack has come directly from someone within the Biden administration and that this may be driving the sudden progress on Ethereum spot ETFs.

The CEO of crypto-focussed asset management firm Galaxy Digital, Mike Novogratz, says the Democratic party may be in the midst of a significant shift in its stance towards cryptocurrency. 

Speaking on CNBC on Tuesday, Novogratz suggested the impetus for change was coming directly from the Whitehouse, saying US President Joe Biden may be looking to neutralise crypto as an election issue in the upcoming federal election.

Novogratz also suggested this change in tack could be responsible for the sudden progress towards Ethereum spot ETFs reported yesterday.

Related: ETH Prices Rally as ETF Rumours Swirl; Analysts Boost Approval Odds from 25% to 75% 


Democrats Realise They Can’t Be The Anti-Crypto Side Anymore, Says Novogratz

Appearing on CNBC’s SquawkBox, Novogratz described what he sees as the Democrats’ mishandling of the crypto issue, which has allowed Donald Trump to aggressively position himself as the pro-crypto candidate, with the former president going so far as declaring “If you’re in favor of crypto, you better vote for Trump” at a rally two weeks ago. 

Meanwhile, Novogratz says, the Democrats have been focussed on reigning in the industry and limiting its growth, creating a very black and white situation:

That kinda set up a firestorm where it almost became a purity test, like Republican good for crypto, Democrat bad for crypto.

Mike Novogratz, Galaxy Digital CEO

Novogratz believes the Democrats have now realised just how serious of a political problem this could be leading into the election as many millions of Americans own crypto—and would rather like to see their investments perform well:

I think the Democratic regime woke up and said, ‘This is crazy’ right? There are more crypto owners in America than there are dog owners, we have 85 million people who own crypto and a lot of them are single issue voters.

Mike Novogratz, Galaxy Digital CEO

Novogratz went on to say he thinks the directional shift is coming directly from the Whitehouse, saying “it feels like someone at the Biden Whitehouse made a call and said ‘Guys we can’t be the party against crypto anymore’, and I think that’s a seismic shift”.

When asked if he believes someone from the Whitehouse called SEC Chair, Gary Gensler, and instructed him to approve Ethereum spot ETFs for political reasons, Novogratz played a straight bat, simply replying: “I am sensing a widespread shift amongst Democrats that don’t want to let crypto be a big election issue.”

Related: ‘Larger Than Gold’: Galaxy’s Mike Novogratz Predicts Trillions Flowing Into Bitcoin 

Novogratz also said he believes the politicisation of crypto is harmful to the industry and claimed much of the Democrat opposition has been driven by Elizabeth Warren and a small group of her supporters:

Crypto should be bipartisan and quite frankly for our industry to do well it needs to be bipartisan. And it has really been Elizabeth Warren and a small group of people that has really kind of held the Democrats hostage on this.

Mike Novogratz, Galaxy Digital CEO

Jody McDonald

Jody McDonald

Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.

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