Novogratz expects Trump’s pro-crypto allies in Congress to drive favorable regulations, energizing the industry.
Regulatory reform could allow major banks to custody crypto assets, bringing “hundreds of billions” to the ecosystem.
Novogratz hints at a possible U.S. Bitcoin reserve, boosted by Trump’s supportive stance and crypto-friendly appointments.
The crypto market is experiencing a “substantial shift in energy,” according to Galaxy Digital CEO Mike Novogratz. Following Donald Trump’s recent election victory, Novogratz highlighted a renewed surge in optimism within the industry, driven by expectations of pro-crypto policies.
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With Bitcoin recently spiking to $76,395.93 at press time, the market response appears to validate the anticipation. Novogratz pointed to an encouraging pro-crypto stance from Trump’s circle, describing it as a key factor in boosting investor confidence and the industry’s momentum.
A Pro-Crypto Congress and Leadership Shift
Novogratz emphasized the importance of the crypto community’s alignment with Trump’s allies, including J.D. Vance, Peter Thiel, and Howard Lutnick, who are openly supportive of digital assets. This political backing, he explained, has energized the crypto sector, with over 240 pro-crypto congress members identified by the industry’s political action groups.
This Congressional shift, paired with Trump’s own pro-crypto agenda, has lifted hope among industry leaders that favorable regulatory changes are imminent. According to Novogratz, the combination of legislative and executive support marks a turning point for the sector.
Expectations for Regulatory Reform and Institutional Involvement
A major part of Novogratz’s optimism centers around regulatory reforms. He noted that key agencies, including the OCC, FDIC, and SEC, may soon operate under leaders with a more favorable stance toward crypto.
Such leadership, he argued, could pave the way for major financial institutions to engage more deeply in crypto, allowing firms like State Street and Bank of New York to handle digital assets directly.
This shift, Novogratz suggested, could bring “hundreds of billions” into the industry, as greater institutional participation becomes viable. The potential for new SEC and Treasury appointments aligned with these interests is seen as pivotal to advancing the industry.
A Potential Bitcoin Reserve on the Horizon?
Novogratz also touched on the possibility of a national Bitcoin reserve, although he tempered expectations, acknowledging the complexities involved. However, he emphasized that the broader shift in regulatory attitudes could lay the groundwork for such moves.
With the Trump administration’s pro-crypto stance, he noted, there is heightened optimism that changes will take effect over the coming months. Hester Peirce, often dubbed “Crypto Mom” for her supportive stance, has been floated for key regulatory positions. Novogratz expressed confidence that, under Trump’s guidance, these appointments would reflect an openness to crypto’s potential.
