Michael Novogratz sees favourable crypto legislation passed as the US general election, scheduled for November 5, 2024, fast approaches.
“Biden administration is listening to the markets and shifting its standpoint on crypto,” said Michael Novogratz.
Being the party against cryptos, with a broad spectrum of public adoption, particularly among the younger generation, is a vote killer.
“Biden administration is listening to the markets and shifting its standpoint on crypto”
MICHAEL NOVOGRATZ
Someone got the message, Michael Novogratz sees favourable crypto legislation
“But assuming, you know, the market is right, and the market is usually pretty smart, it feels like someone at the Biden White House made a call and said, guys, we can’t be the party against crypto anymore,” said Michael Novogratz.
“I think that’s a seismic shift. If those things happen, prices are going higher than here,” he said.
“I am sensing a widespread shift amongst Democrats that don’t want to let crypto be a big election issue. The crypto super PACs (Political Action Committees) have raised over $150 million, and they have targeted Sherrod Brown and Jon Tester, elections which matter dearly to Democrats in swing states, in vulnerable Senate seats.
Crypto should be bipartisan. And quite frankly, for our industry to do well, it needs to be bipartisan. And it has been really Elizabeth Warren and a small group of people that have held the Democrats hostage on this. The Senate broadly said, Chuck Schumer being the Senate leader who voted to overturn Elizabeth was enough. Like, this is becoming dumb.
And so I’m sensing a real shift,” said Michael Novogratz.
“I am sensing a widespread shift amongst Democrats that don’t want to let crypto be a big election issue”
MICHAEL NOVOGRATZ
The apolitical nature of cryptos is an attractive feature of the asset with the world at war
Tit-for-tat asset confiscations with sides at war represent a significant risk to investors.
Investors are discovering that the reserve currency, the USD, is not apolitical during wartime.
The US and its western aligned Group of Seven countries (G7) froze around $300 billion worth of Russian financial assets soon after Moscow sent tens of thousands of troops into Ukraine in 2022. The EU expects the assets to yield about 15-20 billion euros ($16.30-$21.70 billion) in profits by 2027.
“Western firms’ assets worth $288 billion could now be ripe for the taking”
– Wealth Training Company
Russia is attempting to match the G7 seizures of its assets.
May 7; A Moscow court approved the seizure of some 12.4 million euros ($13.34 million) of assets held in Russia by a European subsidiary of JPMorgan. A week later, the Moscow court approved the seizure of over €700m of assets owned by UniCredit, Deutsche Bank, and Commerzbank to satisfy RusChemAlliance’s claim for the payment by the banks of guarantees under a contract between RCA and a German engineering company.
Western firms’ assets worth $288 billion could now be ripe for the taking,
Even bananas are being politicised, with Ecuador calling off the supply of old soviet weapons to Ukraine under the threat of its export of bananas to Russia being banned if the Ecuador arms deal goes ahead.
So Michael Novogratz sees favourable crypto legislation, and with the world in turmoil, cryptocurrencies could be amongst the best apolitical assets, giving the highly volatile asset some elements of a safe haven.
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