Binance's DOJ Deal: Mike Novogratz Says It's Good News for Crypto



by FARUK IMAMOVIC

Binance's DOJ Deal: Mike Novogratz Says It's Good News for Crypto
© Getty Images News/Marco Bello

Binance's landmark $4.3 billion settlement with the United States Department of Justice (DOJ) is being hailed as a pivotal moment for the cryptocurrency exchange and the wider digital currency industry. Mike Novogratz, CEO of Galaxy Digital, shared his insights on the settlement's positive implications for investor confidence and the importance of regulatory compliance in the sector.

Restoring Trust and Ensuring Compliance

In a detailed interview with Bloomberg on November 29, Novogratz spoke about the impact of the Binance settlement. “I think they’re de-risked in lots of ways. People were worried about dealing with Binance.

There’s a lot less to worry about now,” he explained. This sentiment reflects a broader perspective within the industry, viewing the settlement as a crucial step towards resolving lingering compliance issues and restoring trust among users and investors.

Novogratz further elaborated on the importance of compliance, especially in light of regulatory scrutiny. “If you went through the list of TradFi banks who have been sanctioned or fined by different regulators in the last 24 months, it’s a shocking list.

So you’re not looking for zero mistakes, otherwise, there’d be no one to deal with,” he pointed out. His comments underscore the challenges faced by both the cryptocurrency sector and traditional finance in adhering to regulatory standards.

Bitcoin's Bright Future and Cryptocurrency Trends

Novogratz also shared his optimistic outlook on Bitcoin and the general cryptocurrency market, especially with the anticipated developments such as the approval of a Bitcoin exchange-traded fund (ETF) in the U.S.

and the approaching mining reward halving in 2024. “There’s a bunch of good things happening for Bitcoin. We are going to get an ETF. There’s a lot of anticipation, and some of that’s built into the price,” he stated.

The Galaxy Digital CEO believes that when a Bitcoin ETF is approved, major investment firms and asset managers, including BlackRock, Fidelity, ARK Invest, and Galaxy Digital, will actively promote Bitcoin adoption. “The price is going to be significantly higher, especially at a time when the Fed is probably cutting rates.

Could we go to old highs by this time next year? Of course we could,” Novogratz predicted. Moreover, Novogratz highlighted the 2024 U.S. elections and ongoing fiscal challenges in major economies as factors that could further bolster Bitcoin's appeal.

“That uncertainty should help Bitcoin in the fact that the U.S., Europe and Japan still can’t come close to being fiscally responsible is why people got invested in Bitcoin in the first place,” he added.

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