The founder and CEO of Galaxy Digital, Mike Novogratz, has expressed his belief that Democrats are gradually becoming more accepting of cryptocurrencies. In an interview with CNBC, Novogratz warned against politicizing crypto, stating that it could be a major mistake. He has been trying to persuade Democrats to see cryptocurrencies as a technology rather than a political issue, as he believes this shift in perspective could have significant implications for the market and its regulatory environment.
Novogratz pointed out a noticeable change in attitude among Democrats in Washington, which he believes has had a significant impact on the approval of an Ethereum ETF. He suggested that someone in the Biden White House may have influenced this change, stating that they can no longer be against crypto. He emphasized that if the SEC’s change of heart is politically motivated, it could result in a “seismic shift” that drives prices higher.
Traditionally, prominent Democrats such as Senator Elizabeth Warren have been critical of cryptocurrencies, while Republicans have been more supportive. This divide has become more apparent, especially with former President Donald Trump’s campaign announcing its acceptance of donations in cryptocurrencies like Bitcoin, Shiba Inu, and XRP.
In contrast, President Joe Biden has taken a cautious approach, threatening to veto a motion to repeal a contentious crypto accounting rule despite bipartisan support for its repeal. This stance has contributed to the perception of a political divide on the issue.
Novogratz noted that this divide had become a “purity test,” with Republicans seen as pro-crypto and Democrats as anti-crypto. However, he believes recent changes indicate that Democratic leadership is reconsidering its position. He suggested that Senate Majority Leader Chuck Schumer may have influenced a more pragmatic approach, urging Warren to reconsider her opposition to crypto.
The political landscape is particularly relevant as the SEC appears closer to approving a spot Ethereum ETF. Market analysts, including Miles Deutscher, predict significant price surges if the ETF is approved. Deutscher anticipates Ethereum reaching $6,446 by July 23, drawing parallels with Bitcoin’s price increase following its ETF approval.
Bitcoin itself has experienced a bullish trend, recently reaching a peak of $71,954 on May 21, driven by speculation about the potential approval of an Ethereum ETF. Analysts from Standard Chartered project substantial inflows into Ethereum, ranging from $15 billion to $45 billion in the first year, if such an approval is granted. This influx of capital could potentially drive ETH prices to $8,000 by the end of 2024.
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