- Mike Belshe condemns Galaxy Digital’s token-selling practices following its $200M NYAG settlement over LUNA-related allegations.
- Belshe calls for principles-based regulation, warning that deceptive asset promotions weaken industry credibility and invite stricter oversight.
- The FDIC’s recent stance and Fidelity’s stablecoin launch signal growing institutional acceptance amid evolving regulatory conditions.
Mike Belshe, CEO of BitGo, has weighed in on the recent $200 million settlement between Galaxy Digital and the New York Attorney General. He commented in response to a post by Anthony Scaramucci, acknowledging that the NYAG presented a strong case against Galaxy Digital. Belshe pointed to unethical token-selling tactics as damaging to the crypto industry.
Belshe specifically highlighted the contradiction in Galaxy Digital’s behavior. He noted that promoting a token while secretly selling it undermines trust. He referred to the sale of vested tokens while urging others to hold it as misleading and unethical. Though he reaffirmed his respect for Mike Novogratz, Galaxy Digital’s founder, Belshe stressed that such conduct affects the entire digital asset space.
Ethics Over Legal Debate
Belshe emphasized that whether or not the NYAG’s approach was excessive, the actions taken by Galaxy Digital remain questionable. He urged the public to review the compliance measures Galaxy must now follow under the settlement terms. According to Belshe, failures in self-regulation are what ultimately invite more strict oversight.
The BitGo executive outlined his view on the need for what he called principles-based regulation. He clarified that it means avoiding deception and not promoting assets for personal gain while hiding opposing actions. Belshe warned that lacking these standards leads to a loss of credibility across the sector.
Industry Context and Regulatory Momentum
This commentary arrives as U.S. regulatory authorities increase scrutiny of the crypto market. Under the current administration, agencies are aligning with President Trump’s campaign focus on clearer oversight. The FDIC has recently stated that federal banks no longer require special approval to gain exposure to cryptocurrencies.
The policy change from the FDIC is already encouraging wider adoption of digital assets. Fidelity Investments, for example, has introduced a stablecoin on a public blockchain. These moves mark a shift in regulatory sentiment and a push toward more institutional involvement in crypto.
