The CEO of Digital Galaxy, Mike Novogratz, in an interview stated that wrong regulatory attention is given to crypto instead of artificial intelligence (AI) by the government.
He mentioned this to investors at the company's fourth-quarter conference call.
Novogratz is of the opinion that the government has put more focus on regulating crypto — and wrongly so — whereas it should have been more vigilant towards the latter.
In the previous meeting with the investors, he said,
When I think about it, it shocks me so much that we're talking about crypto regulation and nothing about it. I mean, I think the government's completely got it upside down."
To him, this arises from the feeling that the tech could lead to an identity crisis.
In lots of ways, one of the best use cases for crypto is going to be identity around AI, because pretty soon you're going to get a fake Mike Novogratz, hopefully with hair, how do you prove identity with that," he hilariously said.
Funny as that may sound, for all of its benefits, it has its downsides too.
From high implementation costs to security problems, environmental impact, possible disinformation and unemployment, this world-class tech can also be disadvantageous to society.
He believes that the government's regulations towards crypto would be harmful in the long run.
So, if it's the government trying to pressure banks not to be in crypto, if it's regulatory enforcement, the SEC seems to be issuing Wells letters weekly, there's going to be a huge backlog of judicial proceedings."
He continued,
That's not good for innovation, it's not good for America's chance to lead this industry, it's pushing people offshore, and we're fighting back."
However, he was firm in the belief that authorities need to rid the crypto market of fraudulent characters.
Their actions have given the industry a bad name and caused many hardships due to stolen funds.
Consequently, the authorities need to be proactive but cautious while meting out justice so they don't 'throw the baby out of the bath water.'
Per Galaxy Digital's head of research, crypto-focused businesses had the lion's share of venture capital (VC) transactions in 2022, pulling over $30 billion.
Moreover, Novogratz suggested that crypto is a well-grounded technological development that gives people financial opportunities.
He also felt that blockchain-based apps could play a defining role in tackling the issues that might arise from AI, such as enabling corrupt people to generate counterfeit.
Crypto and blockchain are going to have a huge role in that. It is dumb to think that we cache this industry because of Sam Bankman-Fried in his Bermuda shorts, period."
All in all, Novogratz is of the opinion that while artificial intelligence is sure to rise there needs to be more regulation around artificial intelligence and crypto in the future.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.