Regulatory clarity and stablecoin laws expected to unleash new wave of investors
Galaxy Digital CEO Mike Novogratz believes that newly passed U.S. crypto legislation will bring a surge of investor participation capable of disrupting the traditional four-year Bitcoin cycle.
Regulatory clarity reshaping the market
Speaking in a Bloomberg interview, Novogratz pointed to two landmark bills: the GENIUS Act, signed into law in July to regulate stablecoins, and the CLARITY Act, which establishes clear oversight for digital assets.
“It’s a big deal. With those two bookends of legislation, it’s going to unleash a tremendous amount of new participation in crypto,” Novogratz said.
For years, investors have tracked a repeating four-year cycle tied to the Bitcoin halving, the most recent of which occurred in April 2024. Historically, bull markets peak within 12–18 months after a halving, followed by steep corrections. Novogratz argued that this pattern may no longer hold, as institutional adoption and legal clarity are creating lasting demand.
Stablecoins entering everyday use
Novogratz emphasized that stablecoins are now legally usable in mainstream applications, something he said will accelerate adoption. “You couldn’t previously use stablecoins on your iPhones or in social media apps because they weren’t necessarily legal, but now they are. You’re gonna have this new wave of participation,” he explained.
Coinbase CEO Brian Armstrong recently called the CLARITY Act a “freight train leaving the station”, underscoring industry confidence that comprehensive regulation will soon pass through Congress.
Political debates and market pressures
While Novogratz acknowledged potential pushback from Democratic lawmakers concerned about the Trump family’s crypto involvement, he insisted that bipartisan support is growing. “It’s dumb for Democrats to be anti-crypto,” he said, pointing to the increasing number of Democratic leaders backing blockchain innovation.
He also addressed last week’s market turbulence, which saw nearly $200 billion erased from spot markets. Novogratz attributed the drop to large-scale selling by Chinese miners and bearish commentary from industry figure Arthur Hayes, describing the decline as a “pullback” rather than the start of a prolonged downturn.
With regulatory clarity, institutional adoption, and stablecoins integrated into mainstream platforms, experts say the crypto industry could be entering its most transformative phase yet.
If Novogratz is correct, 2025 may mark the year the crypto market breaks free from its traditional four-year cycle.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.