Mike Novogratz Says US Crypto Laws Could Break the Bitcoin Cycle

The new laws that could change everything

Mike Novogratz, CEO of Galaxy Digital, believes the US cryptocurrency market is about to enter a new era. 

In a recent interview with Bloomberg, he said two landmark laws — the GENIUS Act, regulating stablecoins, and the CLARITY Act, defining oversight between financial regulators will transform the industry.

“These two pieces of legislation will attract a huge number of new investors to the cryptocurrency market,” Novogratz said, calling the developments a “major breakthrough.”

The GENIUS Act, signed into law in July, finally gives stablecoins legal clarity, while the CLARITY Act is expected to pass later this year. 

Together, they could unlock mainstream adoption on platforms like iPhones and social media apps, something Novogratz says was impossible before.

Breaking the four-year cycle

For years, many investors have followed the so-called “four-year cycle” tied to Bitcoin’s halving events. The last halving took place in April 2024, leading some to expect a cooling bull market.

Four-year cycle. Source: TradingView

But Novogratz argues this time is different. He predicts investors won’t simply sell at year-end peaks like they did in 2017 and 2021. With new legal clarity, institutional investors and retail buyers alike may hold longer, pushing prices higher.

Coinbase CEO Brian Armstrong echoed Novogratz’s optimism, saying he believes Congress will pass the CLARITY Act, giving markets the structure they need.

Political battles and market moves

Politics may complicate the process. Novogratz noted that Democrats could amplify controversies around the Trump family’s crypto ties, but he believes enough support exists across party lines to pass the bills.

Meanwhile, the crypto market has faced turbulence. A sharp $200 billion selloff hit recently, fueled by heavy liquidations and reports of Chinese miners selling. Adding to the drama, Arthur Hayes sold his entire HYPE token supply to fund a Ferrari, sending the token down more than 23%.

Despite the volatility, Novogratz sees the pullback as temporary. With fresh legislation and growing adoption, he believes crypto could be heading into its most transformative phase yet.