BitGo CEO known to advocate for deregulation, emphasized the need for regulatory oversight to prevent fraudulent practices in the industry.
Mike Belshe, the CEO of BitGo, has shared his thoughts on the recent settlement between Galaxy Digital, which is owned by Mike Novogratz, and the New York Attorney General (NYAG).
Belshe, who is recognized as one of the foremost proponents of deregulation, appears to advocate for regulatory intervention to prevent certain fraudulent practices in the industry, as evidenced by his most recent updates on X.
BitGo CEO Comments on Galaxy Digital Settlement
In direct response to a post by Anthony Scaramucci, Belshe stated that it is difficult to refute the compelling case that NYAG presented against Galaxy Digital. He highlighted the company’s practices of pumping and dumping.
The BitGo CEO observed that it is incorrect to sell tokens immediately after they have been vested and to shill them to HODL when one is truly selling. He emphasized his admiration for Novogratz and his contributions to the industry.
Nevertheless, Mike Belshe deemed Galaxy Digital’s actions to be immoral in light of the NYAG’s stance. Therefore, regardless of whether it constitutes legal excess, this conduct is unethical and undermines the reputation of our entire industry.
He believes this could lead to “over-regulation” if not addressed. He urged Galaxy users to review the controls implemented as part of this settlement Galaxy Digital has reached a settlement with NYAG for $200 million in relation to the contentious Terra (LUNA) sales.
The industry may not be taken seriously if the proper regulations are not in place and top leaders are this manipulative, according to the BitGo CEO. Mike Belshe referred to the issue as “principles-based regulation” in his appeals for oversight.
Furthermore, he elaborated on his point, emphasizing that it is unacceptable for individuals to fabricate information to advertise their assets. He also argued that influential leaders should not conceal the fact that they are selling while encouraging others to make purchases.
During the past few years, industry leaders have frequently condemned the regulation by utilizing the enforcement strategies of key regulators. Mark Uyeda’s appointment as Acting Chair of the US Securities and Exchange Commission (SEC) has resulted in significant changes.
President Trump Fulfilling Campaign Promises
The commission has also established a Crypto Task Force to assist in the development of frameworks that will serve as a guide for the industry. Despite the fact that industry experts such as John Deaton concurred with his proposal, US regulatory agencies are conducting a thorough investigation to assist in fulfilling the campaign promises of President Donald Trump.
The FDIC gave federal banks advice regarding cryptocurrency in a recent update. The commission stated that financial institutions under its jurisdiction are not required to obtain prior approval to acquire exposure to the crypto industry.
The digital currency ecosystem has experienced a new adoption trend as a result of this positive regulatory shift. Fidelity Investments’ introduction of a stablecoin on a public blockchain was one of the most significant beneficial developments.
