Novogratz Pushes for Stringent Crypto Regulations to Counter the Growing AI Threat

Mike Novogratz has urged the US authorities to take a more liberal approach to regulating cryptocurrencies. Galaxy Digital’s CEO says the current attack on the Web3 space, largely due to the alleged fraudulent practices of Sam Bankman-Fried, is like “throwing a baby out with the toilet.”

During Galaxy Digital’s fourth-quarter 2022 call on March 28, Mike Novogratz, the company’s founder and CEO, emphasized the need for viable crypto laws in the United States.

Novogratz noted that the country’s cryptocurrency space was making great progress in innovation-boosting regulations until Sam Bankman-Fried’s disgraced FTX collapsed last November.

And then the Democrats felt so foolish because they were so close to Sam Bankman-Fried from the SEC to the CFTC for a Biden administration, and they used this example of, you know, appalling fraud and manipulation by a guy in Bermuda Short. Say the whole (crypto) thing is bad.

Mike Novogratz, Founder and CEO, Galaxy Digital

In fact, major US financial regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have made life difficult for W3 market participants in recent months with countless enforcement and crackdowns. and countless.

The 58-year-old multi-millionaire argued that the government’s current regulatory approach to digital currencies is a short-sighted move that will do more harm than good in the long run.

“So if the government is trying to pressure banks not to be in the cryptocurrency space, if it’s regulatory enforcement after regulatory enforcement, the SEC seems to be putting out Wells letters weekly, then there will be a huge backlog of court action. That’s not good. To innovate, and it’s not good for America’s opportunity to lead the industry, it’s driving people out, and so we’re fighting.”

Mike Novogratz, Founder and CEO, Galaxy Digital

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The AI ​​needs to be validated

Novogratz has made it clear that it is critical for the authorities to bring rogue crypto market participants like SBF to justice and put them out of business. According to the CEO of Galaxy, they set the industry back and made investors lose their hard-earned money. Therefore, regulators must act with caution so that the entire web3 ecosystem does not collapse.

Novogratz says that the current government attack on the Web3 space can be likened to throwing a baby in the bathwater, an approach that could have dire consequences for the United States. He added that crypto is a powerful technological breakthrough that provides fans with real money-making opportunities.

In the same way that Satoshi Nakamoto’s Bitcoin (BTC) brought blockchain technology into the consciousness of the masses, OpenAI’s ChatGPT and others are opening the gates of artificial intelligence to the world and making life easier for users.

However, despite the endless possibilities that come with AI, Novogratz highlighted the need to organize the space, adding that cryptography and blockchain technology have a huge role to play in the AI ​​sector, particularly in terms of identity verification.

Novogratz sees a future where artificial intelligence will enable bad actors to create fake versions of almost anything in the real world. He concluded that without blockchain-based verification, the world could be a real mess.

According to Alex Thorne, head of research at Galaxy Digital, Web 3 projects and crypto-focused companies dominated venture capital and financing transactions in 2022, attracting more than $30 billion.

Read more: Galaxy Digital takes 60% off Celsius assets after crypto lender goes bankrupt