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.
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.
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.
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