Galaxy Digital CEO Mike Novogratz Discusses Offshoring Operations Amid Regulatory Challenges
Background
During Piper Sandler’s Global Exchange & Fintech Conference on Wednesday, Galaxy Digital CEO Mike Novogratz discussed the regulatory challenges that institutional crypto is facing in the United States. He commented on the industry’s move offshore to circumvent these challenges, but also expressed hope for future legislative progress.
The Need to Move Offshore
According to Novogratz, “Companies like ours are looking at how fast we can move people offshore” due to the difficulty of the regulatory environment for institutional crypto. He explained that Galaxy Digital is planning to move operations overseas in the short term, reflecting a trend of many companies facing similar regulatory challenges.
Hope for Future Progress
Despite the difficulties the industry is currently facing, Novogratz expressed hope for legislative progress in the medium term. He specifically pointed to a draft regulatory bill as a good starting point for the U.S. to become part of the system.
The Impact of FTX’s Collapse
In discussing the driving forces behind U.S. regulators’ aggressive stance on crypto, Novogratz highlighted the collapse of FTX under “sociopathic fraud” Sam Bankman-Fried. Bankman-Fried’s actions were responsible for “setting the industry back a couple years” and causing fear among Democrats who are “petrified of crypto.” Novogratz described the current state of affairs in the U.S. as a “legislative stalemate,” giving further impetus to Galaxy Digital’s offshore plans.
About Galaxy Digital
Galaxy Digital is a global financial services organization that operates across five business lines: trading, asset management, principal investments, investment banking, and mining. With the regulatory challenges in the institutional crypto space, the company is one of many considering moves offshore to continue operations.