Galaxy Digital CEO Michael Novogratz Discusses Crypto Regulation and Texas Expansion

Source: CryptoNewsNet Original Title: Billionaire CEO Michael Novogratz Makes Statement on Cryptocurrency Market Bill Original Link: https://cryptonews.net/news/finance/32291785/ Galaxy Digital, a major crypto financial services and investment management firm, has received approval to expand its Helios data center in Texas to over 1.6 gigawatts capacity. Founder and CEO Michael Novogratz shared insights on this development during an appearance on CNBC’s ‘Squawk Box’.

Infrastructure Transformation

Novogratz explained that Helios, originally acquired in 2022 as a Bitcoin mining facility, has evolved into a comprehensive energy hub primarily driven by artificial intelligence computing power demands.

Regulatory Optimism

Based on his meetings in Washington, Novogratz expressed confidence that cryptocurrency market regulation could become law within weeks, noting that both Democrats and Republicans have demonstrated serious commitment. He emphasized that while perfection shouldn’t be the goal, prompt passage of regulatory legislation is essential for sector growth.

Banking Sector Resistance

Novogratz identified banking lobbying as a major obstacle to regulation, particularly regarding stablecoin debates. He highlighted banks’ concerns about potential deposit migration to crypto systems:

“Currently, banks are making significant profits by earning 3-4-5% interest from the FED on our savings while giving consumers very low interest rates. The potential for stablecoins to offer interest-bearing returns challenges this monopoly of banks. However, we must pass this law; even if it’s not perfect, it’s essential for the growth of the sector.”

This observation underscores the tension between traditional banking interests and cryptocurrency innovation in the regulatory landscape.