Galaxy Digital CEO Mike Novogratz is sounding the alarm, and the excitement, for a potentially game-changing wave in the crypto market.
He predicts that new U.S. legislation could disrupt traditional four-year Bitcoin cycles, opening the door to massive new participation from retail and institutional investors alike.
The catalysts? Two key bills: the GENIUS Act and the CLARITY Act. The GENIUS Act, passed in July, brings stablecoin regulation out of the shadows, while the CLARITY Act clearly defines which agencies oversee crypto assets. Together, Novogratz tells Bloomberg, they create the regulatory framework needed to supercharge adoption.
“With those two bookends of legislation, it’s going to unleash a tremendous amount of new participation in crypto,” he said.
Why does this matter? Historically, Bitcoin has followed roughly four-year halving cycles, driving predictable price swings. The last halving in April 2024 set the stage for institutional growth but Novogratz believes this cycle could break that mold. Investors now show stronger conviction in crypto’s long-term value, and regulatory clarity is finally removing barriers to mainstream adoption.
Stablecoins, for example, faced legal uncertainty that prevented them from integrating with iPhones or social media platforms. Now, thanks to GENIUS Act guidance, mainstream integration is possible, opening smoother, more accessible experiences for everyday users.
Novogratz isn’t alone in his optimism. Coinbase CEO Brian Armstrong is equally bullish, calling the CLARITY Act a “freight train leaving the station” for the market. Meanwhile, Representative French Hill says the House Financial Services Committee expects action on the legislation in October or November, paving the way for a clearly defined crypto regulatory framework.
Even if some Democratic lawmakers push back initially, Novogratz believes bipartisan support is strong enough. The economic potential of cryptocurrency is gaining recognition across party lines, making constructive legislation more likely than ever.
The takeaway? Crypto’s next cycle might not follow the old rules. With clearer regulation and broader adoption, Novogratz expects a new era of market participation and it could be bigger, faster, and more disruptive than anything we’ve seen in the last decade.
