Novogratz, founder and CEO of Galaxy Digital, said he believes the Democratic Party is gradually moving toward accepting cryptocurrencies. He told CNBC that he has been trying to make them understand that politicizing cryptocurrency may be the biggest mistake of the past six years.
Novogratz believes that there is no reason to consider cryptocurrency a political issue because it is just a technology. He said the change could have a significant impact on the market and its regulatory environment.
Novogratz stressed that the sudden and apparent change in attitude of Democrats in Washington has completely changed the prospects for approval of an Ethereum ETF.
According to him, he felt like someone from the Biden White House made a call and said they could no longer be against cryptocurrencies. He highlighted the potential impact of such a shift, saying that if it became clear that the SEC's change of stance was politically motivated, it would be a "dramatic change" that could send prices sharply higher.
Political context and the growing acceptance of cryptocurrencies
Historically, prominent Democrats like Massachusetts Sen. Elizabeth Warren have been critical of cryptocurrencies, while Republicans have been more supportive. This divide has become increasingly apparent, especially after former President Donald Trump’s campaign recently announced that it would accept donations in cryptocurrencies such as Bitcoin (BTC), Dogecoin (SHIB), and Ripple (XRP).
In contrast, President Joe Biden has been cautious, recently threatening to veto a motion to repeal SAB 121, a controversial cryptocurrency accounting rule, despite bipartisan support for its revocation. This stance reinforces the impression of political divisions on the issue.
Novogratz noted that the divide has almost become a “purity test,” with Republicans seen as pro-crypto and Democrats seen as anti-crypto. However, he believes recent changes suggest the Democratic leadership is reconsidering its position. He suggested that Senate Majority Leader Chuck Schumer might urge a more practical approach, telling Warren that she was “getting stupid” to continue opposing cryptocurrencies.
Impact on Ethereum ETF and Market Predictions
The political landscape is particularly important as the SEC appears to be getting closer to approving a spot Ethereum ETF. Market analysts, including Miles Deutscher, predict that Ethereum’s price will see a significant surge if the ETF gets the green light. Deutscher expects that Ethereum could reach $6,446 by July 23 and match Bitcoin’s price increase.
Bitcoin itself has been showing a bullish trend, recently reaching a high of $71,954 on May 21, fueled by speculation that the SEC may approve an Ethereum ETF. Analysts at Standard Chartered also predict that such an approval could lead to massive inflows into Ethereum within the first year, ranging from $15 billion to $45 billion, which could push Ethereum’s price to $8,000 by the end of 2024.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not necessarily reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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