Novogratz on Crypto Legislation, Prediction Markets

Summary

Michael Novogratz discusses the crypto market-structure bill, the stablecoin-yield fight with banks, and the growth of prediction markets. He expects a crypto bill compromise in weeks, sees prediction markets as a fast-growing area despite lobbying from casinos and sportsbooks, and says Galaxy Digital plans to provide infrastructure and liquidity there.

• Novogratz expects a crypto market-structure bill to pass in two to six weeks.
• He says banks are likely to block direct stablecoin interest but a compromise is possible.
• He views prediction markets as innovative and growing, with most volume in sports betting.
• He notes the CFTC has allowed prediction markets while casinos and sportsbooks lobby against them.
• Galaxy Digital plans to enter prediction markets as an infrastructure and liquidity provider.
• He says high-frequency trading firms are likely to supply liquidity if retail participation grows.
• He criticizes banks for paying low deposit rates while earning Fed interest.