Galaxy Digital chief executive officer and former hedge fund manager Mike Novogratz says the United States Securities and Exchange Commission (SEC) has been “ass backwards” on crypto regulation. 

Speaking in an interview with SALT Talks, Novogratz implored the SEC to re-examine its priorities towards crypto-assets and the approval of a bitcoin exchange-traded fund (ETF). Novogratz argued the SEC existed to protect investors and that a bitcoin ETF would provide an avenue around the high-fees and premiums being charged by hedge funds. 

He said, 

The SEC’s job is to protect the little guy, right. That’s the SEC’s job, protect the retail investor. And they have allowed the Grayscale Bitcoin Trust, which is an amazing piece of business for Barry Silbert and his team to grow to $25-$30 billion where investors are paying high fees, they are being arbitraged every day by hedge funds, right.

Novogratz, a former Goldman Sachs executive, praised President Biden’s new nominee for chairman of the SEC, saying he was more atuned to the needs of the crypto market. 

He continued, 

I think Gary Gensler is far, far more attuned to you know what his role is and understanding the intricacies of crypto.

The Galaxy Digital CEO predicted a bitcoin ETF would be approved within twelve months. 

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