Chief Executive Officer of Galaxy Digital Claims Judge Torres Basically Told SEC, “You’re Wrong”

Michael Novogratz, founder and CEO of Galaxy Digital, spoke with co-anchor Joe Kernen on the 21st of July, 2023 on CNBC’s “Squawk Box” about a variety of topics, including the current state of the markets, the rise of AI, and the future of Bitcoin.

For those who may have forgotten, back in December 2020, the SEC filed a complaint against Ripple Labs and its CEOs Bradley Garlinghouse and Christian A. Larsen, alleging that they had violated Section 5 of the Stocks Act of 1933 by making an unregistered offering of stocks.

Novogratz started by talking about the present industry trends, citing the widespread use of artificial intelligence as a major factor fueling market growth. He saw that numerous AI-related companies were rising, which was helping the market as a whole. However, he warned that such fads usually only persist for around a year and a half and that the market’s excitement over AI might be inflating a bubble.

He also discussed the present economic climate, remarking that experts have often been wrong about the economy’s resiliency. The unusual fiscal reaction to the COVID-19 epidemic, he said, was a big reason for it since it was so different from the typical monetary responses to crises. The broad adoption of universal basic income (UBI) and the acceptance of 5% budget deficits, as proposed by Novogratz, have produced an economic climate to which we are not used, which may explain the inability of conventional economic models to foretell future events.

Novogratz predicted that the economy would slow down as the stimulus from government spending programmes wore off. He did concede, though, that the exact timing of this downturn is unclear so long as the economy remains robust.

Novogratz then focused on Bitcoin, claiming that the cryptocurrency has a history of its own. He made the connection between the normalisation of 5% budget deficits and the emergence of Bitcoin, implying that Bitcoin, along with gold and silver, would be needed to pay for the government’s expenditures in the long term. He plans to use these resources to protect himself from the consequences of his economic carelessness.

Also Read: JPMorgan CEO Warns of Deposit Flight as $78,000,000,000 Leaves US Banking System in One Week