Crypto investor Mike Novogratz calls the latest U.S. regulatory developments “historic” for the industry. With the Office of the Comptroller of the Currency (OCC) easing banking restrictions, the SEC softening its stance on enforcement, and stablecoin regulation gaining government support, Novogratz believes these shifts will have a lasting impact on Bitcoin and the broader crypto market.
However, while he sees these changes as bullish for long-term adoption, he also points out why crypto prices have struggled in 2025, despite positive regulatory momentum.
Novogratz took to X to highlight what he sees as the most important regulatory shifts happening in the U.S.:
- The creation of a U.S. Strategic Bitcoin Reserve – He believes this move will send a strong message globally, positioning Bitcoin as a key asset in international finance.
- OCC’s banking policy shift – He argues that allowing banks to provide crypto custody and transaction services will have a greater impact than the Bitcoin reserve itself.
- Stablecoin regulation gaining government support – With U.S. officials recognizing stablecoins as a tool for maintaining dollar dominance, Novogratz sees this as a watershed moment for digital assets.
These policy shifts suggest that crypto is no longer on the fringes of finance but becoming integrated into the mainstream financial system.
Why Hasn’t Crypto Surged on This News?
Despite these regulatory tailwinds, crypto prices have remained stagnant in early 2025. Novogratz points to several key reasons:
- Market exhaustion after 2024’s bull run – The frenzy peaked with the Crypto Ball event at the U.S. inauguration, after which momentum cooled.
- Institutional caution – Large investors are holding back, waiting for clearer signals before re-entering the market aggressively.
- China’s shifting focus – Chinese investors favor stocks over crypto, reducing inflows into digital assets.
- The collapse of meme coin speculation – Retail hype has faded, removing a major source of market volatility.
- Stock market shifts impacting crypto – Broader financial market trends have created a drag on Bitcoin’s momentum.
Novogratz remains bullish but acknowledges that the market needs a new narrative to reignite interest.
A Crypto Policy Pivot in the Making?
Beyond the OCC’s policy shift, other regulatory bodies are signaling a more hands-off approach:
- The SEC is stepping back from aggressive lawsuits against crypto firms.
- The CFTC is easing its crackdowns, signaling a shift in enforcement priorities.
- Banks and financial institutions can now engage in crypto services, including custodial offerings and DeFi staking.
These developments mark a dramatic reversal from previous years, where regulators took a hostile approach toward digital assets.
With a more favorable regulatory climate, major crypto exchanges like Kraken and Gemini actively pursue initial public offerings (IPOs).
Novogratz believes public listings could boost investor confidence, further solidifying crypto’s integration into traditional finance. However, he warns that for Bitcoin to fully recover, it must break above $91,000 to establish a new leg of the bull market.
The Road Ahead
While Novogratz sees 2025 as a foundational year for crypto regulation, he also acknowledges that short-term headwinds remain. The market needs fresh retail interest, new catalysts, and stronger institutional engagement to regain momentum.
The industry leader remains bullish on crypto’s long-term trajectory but warns that the path forward will require patience, strategic positioning, and a break above key price levels.
