Galaxy CEO plans to move more people overseas, warns others are doing the same

Galaxy Digital Holdings CEO Michael Novogratz is planning to move people out of the U.S. amid regulatory uncertainty many critics say is pushing crypto business out of the country. He warned that other firms are following suit. 

“I think certainly in the short run, we’re going to look to move people out of the U.S. overseas. And lots of companies are,” Novogratz said at the Piper Sandler Global Exchange & FinTech Conference last month, according to a transcript that was made available today.

Crypto companies including Gemini have made headwinds abroad, with the exchange announcing last month that it plans to build out its Singapore office by hiring more than 100 employees over the next year. This comes as the U.S. Securities and Exchange Commission has brought charges against big names in crypto including Coinbase and Binance, with many crypto advocates saying increased regulatory clarity is needed. 

“In the medium run to long run, the U.S. has to be part of the system,” Novogratz said. “We’re too big a part of the global economy. And for crypto to really fulfill its destiny, but — we’ve got to get the U.S. engaged. And so I am, by no means going to flip the middle finger at the regulator. We are trying to engage with politicians and regulators every single day to get to a good place.”

Novogratz doesn't seem optimistic about pending legislation

Novogratz was also asked about a draft bill that is trying to provide a pathway for when a token can go from being treated as a security to a commodity, which has lower disclosure requirements. Senior House Republicans, including House Financial Services Committee Chair Patrick McHenry, proposed the bill in June. 

“It’s not going to pass, but at least there’s a placeholder down,” Novogratz said. 

McHenry has said his committee is planning to vote on that legislation as soon as next week.