Many of Lawsuits Initiated under Gensler Will be Dropped: Billionaire Investor Mike Novogratz

cryptonews.com:

Billionaire investor Mike Novogratz believes many of the lawsuits brought under current Securities and Exchange Commission Chair Gary Gensler will be dropped. 

In a  recent interview with Forbes , Novogratz highlighted the inconsistencies in the SEC’s approach to regulating crypto assets, referencing the recent legal battle over a Bitcoin exchange-traded fund (ETF). 

He pointed out that the court  criticized the SEC for denying a spot Bitcoin ETF  while allowing futures ETFs, exposing the illogical reasoning behind the decision.

The crypto veteran said that regardless of the political affiliation of the next SEC chairperson, there is a likelihood that many of the lawsuits initiated under Gary Gensler’s tenure will be dropped. 

“Looking ahead, regardless of the political affiliation of the next SEC chairperson, there’s a likelihood that many of the lawsuits initiated under Gensler’s tenure will be dropped,” he said. 

“This reflects the growing recognition of the inevitability of crypto’s integration into the financial system.”

However, he also noted the ongoing challenge of regulatory uncertainty surrounding the classification of digital assets as securities or commodities. 

The outdated Howey Test, designed for traditional securities, fails to adequately address the complexities of blockchain-based technologies, hindering industry growth and imposing financial burdens on businesses navigating the regulatory landscape.

Novogratz also acknowledged the frustration caused by the regulatory uncertainty and the impact it has on firms that prioritize compliance and risk mitigation. 

The crypto billionaire emphasized the need for clear and comprehensive regulatory frameworks at both the federal and state levels to level