Novogratz: Stablecoin Law Will Open the Floodgates for Wall Street Crypto Invasion

By José Oramas June 19, 2025 In GENIUS Act, Law, Stablecoins

Michael Novogratz praised the GENIUS Act as a major catalyst for institutional crypto adoption, saying it clears the way for Wall Street to enter the space at scale.
He confirmed Galaxy is in talks with the SEC to tokenise its own shares and other equities for DeFi use, aligning with broader efforts to integrate TradFi with blockchain.
Despite the bill’s passage, Novogratz acknowledged much work remains on broader crypto regulation, noting the difficulty of advancing even this “easiest” legislation.

Michael Novogratz says the stablecoin bill is a massive greenlight for Wall Street capital.

Speaking in a recent Bloomberg interview, the Galaxy Digital CEO called the legislation a long-awaited catalyst that will finally open the gates for traditional finance to enter crypto at scale.

We set up Galaxy in 2017 with the idea that institutions would finally come to the market and they’re here. We will get the stablecoin bill and hopefully a market structure bill and it will bring TradFi into this technology.

Michael Novogratz, Galaxy Digital CEO.

As Crypto News Australia reported, the GENIUS Act marked the first major federal regulatory framework for dollar-pegged digital assets.

The bill’s passage this week formalises a regulatory framework for what’s been a gray area for US markets, and arrives as major banks move ahead regardless, starting with JPMorgan’s pilot for a tokenised dollar deposit, JPMD. This stablecoin was built for internal transfers and settlement.

Recall that Democrats failed to secure amendments aimed at blocking Donald Trump from profiting off his own crypto holdings, but the bill passed anyway—cementing a political win for the industry and the administration.

The Legal Landscape for Stablecoins

Novogratz basically believes that legacy institutions are staking out ground as the legal landscape clarifies. It’s worth noting that the company began trading on Nasdaq via direct listing in May, in addition to its Toronto Stock Exchange listing.

He also added that Galaxy is currently in talks with the Securities and Exchange Commission (SEC) to tokenise its own shares (and eventually other equities) so they can be deployed within DeFi systems.

We will see tokenized equities for crypto and non-crypto. We will partner with people, we will have white label solutions for people and have our own solutions for our customers.

Michael Novogratz, Galaxy Digital CEO.

However, there’s still a long way to go, and it doesn’t help that the GENIUS Act was supposed to be the easiest legislation, so one can only imagine how much time it will take to clear out (or build) the path for crypto market structures, DeFi protocols, etc.