Billionaire Michael Novogratz, founder and CEO of Galaxy Digital, has expressed optimism that the passage of significant stablecoin legislation will attract more traditional financial institutions to the cryptocurrency market. In a recent Bloomberg Television interview, Novogratz stated that the forthcoming stablecoin bill, potentially followed by a market structure bill, will be a catalyst for traditional finance (TradFi) to embrace cryptocurrency technology.
Novogratz, who established Galaxy in 2017 with the anticipation that institutional investors would eventually enter the cryptocurrency market, noted that this influx is now becoming a reality. “We set up Galaxy in 2017 with the idea that institutions would finally come to the market and they’re here,” he said. The passage of the stablecoin bill, according to Novogratz, will serve as a crucial step in bringing TradFi into the cryptocurrency space.
The stablecoin legislation is expected to provide clearer regulatory guidelines for stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a fiat currency, such as the US dollar. This clarity is likely to increase confidence among traditional financial institutions, encouraging them to engage more deeply with the cryptocurrency market.
Novogratz’s comments come as the cryptocurrency industry continues to evolve, with increasing calls for regulatory clarity to facilitate greater institutional participation. The potential passage of both stablecoin and market structure bills represents a significant development in this area, potentially marking a turning point in the integration of traditional finance with cryptocurrency.
