A prominent Bitcoin bull, Mike Novogratz, expresses his optimism about the potential of the Bitcoin ETF. Marc Cuban challenges the crypto assumptions of John Reed Stark. Regulatory clarity will be the catalyst for BTC adoption, according to Michael Saylor of MicroStrategy.
The best thing ever for bitcoin
In a recent post, Galaxy Digital CEO Mike Novogratz described BlackRock’s possible ETF launch as “the best thing that could happen to Bitcoin.” Novogratz explained that if BlackRock CEO Larry Fink is able to successfully launch a Bitcoin ETF, it will significantly increase institutional involvement in the crypto space. Novogratz’s statements came at a time of regulatory turbulence for cryptocurrencies in the US.
cryptocoin.com As you follow, the Securities and Exchange Commission (SEC) has sued Binance and Coinbase. In this context, Novogratz cites the regulatory scrutiny that crypto is currently facing. The billionaire states that the uncertainty surrounding the regulatory environment has slowed institutional flows to crypto. Despite these challenges, Novogratz sees a silver lining in the resistance of individual investors, which he claims continues to buy cryptocurrencies.
Meanwhile, even in the volatile environment, Bitcoin remains strong and is trading above the $25,000 level. “If you told people that all this was going to happen and that Bitcoin would still rise in the year, they would scratch their heads,” Novogratz says. In addition, Novogratz notes that relocating Galaxy’s operations to offshore countries has become “almost necessary” to operate without fear of punishment.
Mark Cuban and John Reed Stark clash!
Marc Cuban challenges Stark’s assumption that every crypto-related business that contains or considers using tokens is a large business. In his argument, most crypto apps are conservative. Also, only a handful of people are involved in it.
John. I think you are misreading the impact of what the judge said. It’s not related to this suit.
Not all crypto businesses that have tokens or are considering using tokens are large “enterprises”. Which is the assumption, I believe you are making. (Correct me if I’m wrong…
— Mark Cuban (@mcuban) June 14, 2023
Cuban strengthens his argument by describing a small company that applied to the SEC for guidance on registration matters. According to Cuban, the regulator had asked the company to hire an attorney instead of guidance, which was an indirect attempt by the agency to get the entrepreneur to hire a securities attorney. That’s why Cuban sees it as a problem that the SEC and chairman Gary Gensler constantly sabotage startups.
The discussion shifted to token utility and digital asset space regulation, where Stark argued that tokens should not be treated as “pink pages or stocks.” The former SEC official argues that tokens are very different from stocks. By contrast, Cuban points out that Stark’s perspective is biased. Accordingly, he argues that tokens can be treated like other securities and that the regulator should propose guidelines for them. Mark Cuban draws an analogy between the early internet and cryptocurrency. In this context, Cuban argues that the smart contract implementation is valid. It also calls for the SEC to further assist startups without sacrificing its duty to protect investors.
Cuban predicts a crypto carnage where most companies will go bankrupt
However, the tech giant admits that “90% of blockchain companies and 99% of tokens will go bankrupt.” According to him, Congress should amend the exemptions currently in effect that are biased towards the crypto industry. He states that this will provide a clear path for exchanges to operate in an investor-friendly manner. He also states that it will support the growth of the sector.
Cuban also says that while there are valid criticisms of the crypto industry, none of them can override the industry’s impact on the economy. As such, he states that the “Crypto Derangement Syndrome”—an irrational fear or hatred of crypto—will have a similar effect as overstating its potential.
Michael Saylor envisions a future specific to Bitcoin (BTC)
Regulatory clarity will be the catalyst for BTC adoption, according to Michael Saylor of MicroStrategy. It will also lead to a Bitcoin-centric future in the US crypto industry. Saylor believes the SEC’s recent regulatory actions lay the foundation for the next BTC bull run. In this context, Saylor emphasizes the importance of regulatory clarity. He states that this will remove confusion and anxiety among institutional investors. He states that regulators have reservations about “crypto securities.” It also envisions a future where crypto exchanges primarily buy and sell pure digital commodities like Bitcoin.
The SEC did not classify Bitcoin as a commodity. However, Saylor expects the pressure on stablecoins and other tokens to increase Bitcoin’s dominance. In line with this, he believes that BTC dominance will increase it to over 80% of the total crypto market. Also, Saylor highlights the lack of enthusiasm by regulators towards stablecoins, crypto securities and tokens. Thus, it points to the rationalization of the industry. Accordingly, he emphasizes that Bitcoin is the only institutional-grade investmentable asset in the crypto space. He attributes this to its worldwide recognition as a digital commodity.
Saylor’s previous view of Ethereum is to see it as a security. Therefore, it remains focused on the exponential growth potential of BTC. He also states that the logical progression for BTC is to increase its value tenfold and repeat the process. Saylor says BTC’s unique qualities will be increasingly recognized. As such, he envisions a future where BTC paves the way for a transformative era in the US crypto industry. Saylor predicts that BTC will rise tenfold in value and then grow exponentially.
