Galaxy Digital CEO Mike Novogratz compared the recent decline of cryptocurrencies to the collapse of Lehman Brothers during the 2008-2009 financial crisis.
The industry needs to be legalized. If it is, it will become transparent and oversight agencies will be able to ensure the safety of investors, the billionaire said at a summit hosted by Bloomberg.
Regulators still don’t have enough leverage to control the movement of funds in digital currencies.
Novogratz said:
“I don’t know what the SEC [U.S. Securities and Exchange Commission] should have done or could have done, but it has done little to protect retail investors.”
Nevertheless, Galaxy Digital’s CEO shares the view of those experts who predict bitcoin’s long-term growth. In his opinion, the BTC exchange rate will eventually reach $500,000. With central banks struggling with inflation, there will be increasing demand for alternative instruments, one of which is BTC.