Two landmark crypto bills in the United States may mark the end of the traditional four-year market rhythm, according to Galaxy Digital CEO Mike Novogratz.
Speaking with Bloomberg on Tuesday, Novogratz highlighted the GENIUS Act, which provides a clear framework for stablecoins and was signed into law in July, along with the CLARITY Act, designed to settle questions about which regulators oversee different areas of crypto. Together, he said, they could “unlock massive participation in the digital asset space.”
“Those two pieces of legislation are game changers. They’re the bookends that can bring in a tremendous amount of new money and involvement in crypto,” Novogratz explained.
Historically, crypto markets have been seen as cyclical, closely tied to Bitcoin’s halving events every four years. The last halving was in April 2024, fueling speculation that the current bull run might fade by the end of the year.
But Novogratz believes this time could be different. Unlike 2017 and 2021, when investors cashed out heavily at cycle peaks, he expects new participants will hold longer thanks to clearer rules and wider use cases.
“In the past, you couldn’t easily use stablecoins on your iPhone or inside social platforms because of legal uncertainty. That barrier is gone now,” he said. “This next wave of adoption might not follow the old playbook.”
CLARITY Act momentum builds
Coinbase CEO Brian Armstrong reinforced that outlook earlier this month, calling the CLARITY Act “a freight train leaving the station.” He expressed confidence that Congress would finalize the bill soon, a view also shared by Representative French Hill, who expects movement in October or November.
Political pushback possible
Addressing concerns over the Trump family’s deepening ties to crypto, Novogratz dismissed fears of conflicts of interest, saying regulators like the SEC would intervene if needed.
“I don’t think you can stop the children of politicians from getting involved in business,” he said. Still, he warned that some Democrats may frame the issue as political “grift” and attempt to block market structure reforms.
Even so, Novogratz argued enough Democratic support exists to carry the legislation forward, adding that opposing crypto had already proven a losing stance in last year’s election.
Recent market slump tied to miners, Hayes
Commenting on the latest sell-off that erased nearly $200 billion from crypto markets, Novogratz pointed to aggressive selling by Chinese mining firms and pessimistic remarks from BitMEX co-founder Arthur Hayes.
“Hyperliquid bore the brunt of it, and that soured sentiment across the board. But I see it as nothing more than a healthy correction,” he said.
Hayes recently sold all his HYPE tokens to fund a Ferrari purchase, coinciding with a sharp 23% drop in the asset since its record high last week, as large holders continue to take profits.
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