Crypto regulations have always been a subject of interest in the crypto space.
It’s been just revealed that the Galaxy Digital CEO Mike Novogratz said that while regulators don’t have Bitcoin and Ethereum in their sights, they target multiple areas of the crypto industry.
Sectors to be impacted by efforts of regulations
During a CNBC interview, Novogratz highlights the sectors that will probably be impacted by the efforts of outgoing US Treasury Secretary Mnuchin to regulate the space.
“These regulations really are hitting the stablecoin market, and they are not actually designed to go after Bitcoin and Ethereum per se; they are designed for the companies that traffic in them. And those are mostly companies in retail.”
It’s been revealed that the Financial Crimes Enforcement Network (FinCEN), a US Treasury Department agency, proposed rules that would mandate financial service providers in crypto to “store, and in some cases, pass on information regarding funds sent to cryptocurrency wallets,” as reported by the Daily Hodl.
He also said that the proposed rules should not have been put out just a few weeks before the current US Treasury Secretary paves the way for a new appointee.
“This stuff should have a proper 60-day comment period.”
It’s also important to note the fact that Novogratz also addressed the impact of the proposed regulations, and he said that they would disadvantage the US if implemented.
“Quite frankly, there are a lot of unintended consequences. This is anti-dollar. It boosts China in lots of ways. And it is anti-innovation. It is going to push a lot of the cool stuff that’s happening in crypto offshore.”
It’s been also revealed that the Galaxy Digital CEO said that Bitcoin’s bull run in this scenery of regulatory fears is a sign of BTC’s strength.
“It tells you about how powerful this bull market is. They are throwing lots at the system, and it’s not actually impacting it.”