Michael Novogratz begins moving overseas as a string of crypto companies give the middle finger to the US Security Exchange Commission (SEC).
Billionaire Galaxy Digital CEO Michael Novogratz suggested that the regulatory crackdown on the crypto industry in the US will prompt many firms to shift more staff overseas — his included — but said he won’t ”flip the middle finger at the regulator.”
In July, this month, crypto scored a key legal victory in the long-running regulatory feud with Ripple.
US judges ruled that Ripple Labs did not violate federal securities law by offering its XRP token on public exchanges, which shattered the key argument made by the SEC.
The ruling sent XRP, a token designed for cross-border payments, up some 70% to about 80 cents, at the time of writing.
“Billionaire Galaxy Digital CEO Michael Novogratz suggested that the regulatory crackdown on the crypto industry in the US will prompt many firms to shift more staff overseas”
WEALTH TRAINING COMPANY
The crypto industry believes it would be incorrect to regulate digital assets as securities. SEC, Chairman Gary Gensler, has argued otherwise.
But the Southern District of New York Judge ruled in favour of the crypto industry.
The court’s ruling was a partial win for XRP because the judge ruled that for hedge funds and other sophisticated buyers, the crypto did violate securities laws.
Nevertheless, Ripple’s chief legal officer, Stuart Alderoty, was on a victory lap, calling it “a huge win.”
“As a matter of law,” “XRP is not a security…Maybe we can now start a rational conversation about crypto regulation in this country,” he tweeted.
Coinbase, the world’s largest crypto exchange based in the US, rallied on the news.
“XRP is not a security…Maybe we can now start a rational conversation about crypto regulation in this country”
Stuart Alderoty, Ripple
Taming the wild west, Michael Novogratz begins moving overseas
Wall Street top cop Gary Gensler wants to tame the crypto market, which he likens to the wild west.
Cryptos are here to stay, so it’s a question of who will be involved in the lucrative business of policing an industry worth more than three trillion dollars at its peak a few years ago.
So the SEC wants a cut in the crypto business, and so too does the Commodity Futures Trading Commission (CFTC), over which agency has the power to oversee these assets and the broader sector.
A turf war continues between SEC and CFTC over who gets to sink their teeth into the young lucrative crypto market.
“Binance, a crypto exchange, gave the SEC the middle finger and is located outside the US” – Wealth Training Company
But Michael Novogratz begins moving overseas along with a string of crypto companies.
Here is the zinger; Lawyers for Binance have alleged that Securities and Exchange Commission Chair Gary Gensler offered to serve as an informal advisor to the company, according to a letter sent to the SEC.
The unwritten rule; pay the regulators “consulting fees”, and they will get off your back. The wild west with kickbacks?
So Binance, a crypto exchange, gave the SEC the middle finger and is located outside the US.
Michael Novogratz begins moving overseas, and so does a string of other crypto companies to avoid regulatory costs
But maybe the same unwritten rules apply wherever they locate. Attract the attention of the big guy, and you have got to give him a piece of meat.
Rate:
