Mike Novogratz, the CEO of digital asset investment company Galaxy Digital, has stated that the U.S. government is misguided in its focus on crypto legislation while ignoring the potential dangers posed by artificial intelligence (AI). He made these remarks during the company’s fourth-quarter conference call on March 28, 2023.
Testing out the $GLXY employee of the month chain🔥🔥🔥 pic.twitter.com/1z9oxVeZeD
— Mike Novogratz (@novogratz) December 23, 2021
Novogratz claimed he is surprised that cryptocurrencies are receiving more regulatory attention than artificial intelligence (AI). He stated, “When I think about AI, it shocks me that we are talking so much about crypto regulation and nothing about AI regulation. I mean, I think the government’s got it completely upside-down.”
Novogratz predicted that artificial intelligence could lead to a “deep fake” identity crisis, noting that the prevalence of deep fake technology makes establishing a trustworthy identity difficult. He went on to say that the intersection of identity and artificial intelligence would most likely be one of the most compelling use cases for cryptocurrencies and blockchain technology.
Novogratz admitted that some cryptocurrency actors engage in fraudulent and criminal behavior, which has significantly contributed to the industry’s negative reputation. He stated that he does not absolve them of their actions and fully supports the efforts of regulators to restore the industry’s credibility.
Novogratz expressed his support for the purge of dishonest actors from the industry and acknowledged that they must be held accountable for their actions, which resulted in losses for him and other investors.
Nevertheless, he emphasized that he does not support the idea of getting rid of the entire industry, reiterating his belief that crypto is a credible substitute for traditional currencies and provides a way to save money in a world where all currencies might lose their value.
In his earlier statements during the conference call, Novogratz observed that the regulatory landscape in the United States is strict in certain respects. He stated that the regulators had recorded significant progress until the FTX implosion. He believed that after the FTX saga, the United States regulators started designing strict rules that negatively affected the other actors in the industry.
He also added that if the government continued to compel banks to avoid investing in cryptocurrencies through regulatory enforcement and the SEC continued to issue Wells Notices every week, there would be a substantial backlog in court cases.
Meanwhile, Coinbase revealed that it received a Wells Notice from the U. S. Securities and Exchange Commission on March 22, 2023. In response, Coinbase CEO Brian Armstrong criticized the commission. Armstrong accused the SEC of a lack of regulatory clarity for cryptocurrencies, which is supposed to guide operators in the industry.
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