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The enactment of two significant crypto legislations in the US will herald a fresh influx of crypto involvement that might overturn the conventional four-year market rhythm, states Galaxy Digital’s Chief Executive Officer Mike Novogratz.
Novogratz mentioned to Bloomberg on Tuesday that the stablecoin-regulating GENIUS Act, signed into law in July, alongside the CLARITY Act, which delineates regulatory bodies’ authority over crypto, would result in a surge of new investors that could disrupt the four-year cycle trend.
“It’s a significant matter. With these two legislative bookends, it’s set to unleash a substantial amount of new participation in crypto.”
Numerous crypto investors believe the market adheres to a trend of price fluctuations coinciding with the Bitcoin (BTC) halving approximately every four years. The last halving took place in April 2024, leading some to speculate that the current bullish market might soon conclude.
Nevertheless, Novogratz mentioned that this crypto market cycle might be distinct, as investors are less likely to sell at peak points at the end of this year compared to 2017 and 2021.
He remarked that previously, individuals couldn’t utilize stablecoins on their iPhones or in social media applications because they weren’t necessarily legal, “but now they are.”
“You’re going to witness this new wave of involvement, so we might not adhere to the standard cycle.”
CLARITY Act a “freight train”
Coinbase’s Chief Executive Officer Brian Armstrong expressed Novogratz’s viewpoint on Sept. 17, asserting that he was convinced Congress would pass the CLARITY Act, which stipulates the duties of the nation’s financial regulatory agencies concerning crypto.
“I’ve honestly never felt more optimistic about the market structure [bill] getting approved, it’s a freight train departing the station,” he stated at that moment.
Last week, Representative French Hill mentioned that the House Financial Services Committee is hopeful that action will be taken on the legislation in either October or November.
Democrats could resist the legislation
Novogratz also minimized worries regarding the Trump family’s involvement in crypto, confident that the Securities and Exchange Commission would address any potential conflicts of interest.
“I don’t believe you can stop the children of powerful individuals from engaging in business,” he stated.
He noted that Democratic lawmakers might make a considerable issue over what they regard as “grift” from the Trumps and potentially oppose the crypto market structure bill.
Related: Top US Democrat signals fight over crypto market structure
Novogratz asserted that there are now sufficient Democrats who recognize the importance of crypto to pass the bill, but it was “unwise for Democrats to be anti-crypto” during last year’s presidential election.
Chinese miners and Hayes contributed to market decline
Commenting on this week’s leverage decline, which saw nearly $200 billion evaporated from spot crypto markets, Novogratz attributed the downturn to “significant Chinese mining selling,” and Arthur Hayes’ “bearish remarks concerning Hyperliquid.”
“Hyperliquid was affected the most, and that influenced some of the overall market sentiment, but I consider this merely a pullback.”
Hayes divested his entire reserve of HYPE to make a payment on a Ferrari, and the token has decreased over 23% since its all-time high late last week as whales continue to sell it off.
Magazine: Hayes predicts ‘up only’ for crypto, ETH staking exit queue anxieties: Hodler’s Digest
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