Mike Novogratz criticizes U.S. listing process for Galaxy Digital

In an effort spanning several years, Mike Novogratz's Galaxy Digital has finally succeeded in listing on the Nasdaq, significantly marking a pivotal moment for the company and its founder. This achievement comes after what Novogratz characterized as an arduous and frustrating U.S. listing process, which he referred to as 'un-American, unfair, and infuriating'. The complications arose due to nine rounds of comments with the Securities and Exchange Commission. Additionally, the regulatory scrutiny experienced by crypto companies resulted in substantially higher auditing costs for Galaxy compared to firms such as Jefferies. Despite these challenges, Novogratz noted that rather than defeating Galaxy Digital, these obstacles have fortified the company, stating, 'Scarcity makes you tougher.' He also indicated that Galaxy was not the sole company affected by the stringent regulatory environment, highlighting similar struggles faced by other crypto firms, including eToro, which recently went public on the Nasdaq. Previously, Galaxy Digital had listed on the Toronto Stock Exchange, as U.S. regulators were hesitant to embrace cryptocurrencies. The Toronto Stock Exchange has served as a crucial testing ground for digital asset firms unable to secure footing in the more lucrative U.S. market, where Novogratz believed the potential growth was significantly greater. He argued that if Galaxy Digital had been able to enter U.S. markets sooner, the company would have achieved a vastly different level of scale and recognition. As a former hedge fund manager who has transitioned into the crypto space, Novogratz has consistently been proactive in advocating for broader acceptance of cryptocurrencies. He has witnessed the crypto industry's transformation from a niche subject to an increasingly significant topic within American political discussions. Notably, he observed a surge in crypto representation during significant events such as the presidential inauguration, underscoring the growing influence of crypto leaders to which Democratic policymakers have begun to respond positively, particularly following the election of President Donald Trump. He recounted meeting with the incoming SEC Chair Paul Atkins, framing the challenges Galaxy faced as just part of the journey toward achieving legitimacy in the financial sphere.