Billionaire Mike Novogratz says, regulators are going after fraud and market manupulation

In an interview with Bloomberg on May 5th, Mike Novogratz, a billionaire, and former hedge fund investor shared his views on the future of cryptocurrencies.

CEO and Founder of Galaxy Digital Capital Management, Novogratz, also spoke about the need for regulation in the cryptocurrency world.

When asked about why an institution would want to come before the SEC or the DOJ, he said:

“Regulators don’t come from retails, their job is to protect the retail. Regulators come from institutions… they missed this completely as there is no one pointing on it.”

However, towards the end of 2017, the cryptocurrencies ‘went from a small market cap to almost a trillion dollars worth of market cap’. Regulators got worried when people around the world started talking about cryptocurrencies and popular people started pitching the coins.

He furthers confirms that regulators are slowly getting involved. They are going after fraud and market manipulation. This is ‘healthy’ according to him as it will remove all the unnecessary things from the system.

On the other hand, he feels that there are bigger decisions to make. The regulators have said that Bitcoin is not a security but they have not ruled on Ethereum yet. He said:

“They[regulators] will say that Ethereum was probably a security and they are stuck because they weren’t ahead, there was a group of token that were issued probably 2500 in total but in reality 200 that matter that are in a regulatory no man’s land. They have to figure out how to deal with that and they are working on that right now.”

He feels that the regulators may take out law firms, tokens, or promoters of cryptocurrencies to make it clear to the people that they must ‘play by the rules’.

On the contrary, in terms of the future, he says that the regulators are very constructive about wanting to see this new innovative way of financing companies, bringing liquidity, and giving people access to markets.

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