- Galaxy Digital settles with NYAG for $ 200 million on Terra Luna Mishandling.
- The CEO of Bitgo invites the ethical practices of cryptography and supports the regulations based on principles.
Galaxy Digital has reached a 9-dollars regulation with the New York Attorney General (NYAG) for his alleged mismanagement of the Terra Luna Cryptée cryptocurrency.
Mike Belshe takes a blow to Galaxy Digital
However, the regulations sparked discussions across the industry, the CEO of Bitgo, Mike Belshe, weighing on the issue.
Despite his plea for deregulation, Belshe recognized the force of the case of Nyag against Galaxy Digital, signaling a change of position towards regulatory surveillance.
His remarks, made in response to a post by Anthony Scaramucci on X, highlight increasing concerns concerning fraudulent practices in cryptographic space.
Source: Anthony Scaramucci / X
Belshe criticized the pump-and-dump tactics of Galaxy Digital, highlighting the practice of the company to unload tokens during the acquisition while promoting Winging.
He underlined the ethical concerns about such actions, but also recognized his respect for Novogratz and his contributions to the cryptographic industry.
Belshe said,
“I always thought that Mike brought good maturity to the crypto and I respected it for that, but I was shocked to read the facts described by Nyag. So, exaggeratedly legal or not, it is not ethical, and this type of behavior means that our entire industry is bad. Without control, this is what leads to “excessive regulations”.
Suggesting a way out, he added,
“” Principles based regulations “could well adapt here: do not lie to promote the assets you hold; Do not tell others to buy by hiding the fact that you sell. ”
Regulation on cryptography in the Trump administration against Biden
As expected, the emphasis on Belshe on cryptographic regulations subtly reflect the striking contrast between the approaches of the administrations of Biden and Trump to the industry.
Under Biden, large cryptographic companies such as Consensys, Ripple (XRP), Robinhood, Metamask, Coinbase and Kraken were faced with implacable legal battles with the SEC.
However, with Trump’s return, many of these disputes were finally resolved, reporting a change in regulatory position.
This change is still strengthened by Paul Atkins, Trump’s president of Trump’s president, who recently committed to establishing a more “rational” and “coherent” regulatory framework for crypto, potentially inaugurating a new era of policies adapted to industry.
In his declaration during the hearing of the Banque Committee of the American Senate, he said it better when he said,
“An absolute priority of my presidency will be to work with my colleagues commissioners and the congress to provide a firm regulatory basis for digital assets thanks to a rational, coherent and based on principles.”
