BitGo CEO rejects claim crypto industry is dictating US policy

BitGo CEO Mike Belshe urged the US to advance the CLARITY Act, warning that further delays could expose investors to risks that traditional financial markets have long separated from.

In an interview with Bloomberg on the sidelines of TOKEN2049 Singapore this week, the entrepreneur said market structure helps isolate counterparty credit and custody risks, while crypto exchanges have often combined those risks and suffered failures as a result.

Belshe said he supports ethics rules but argued that disagreements over political provisions should not hold up legislation establishing market structure.

“I support it for digital assets and for stocks and for commodities and for every other type of asset. There’s no reason to have ethics rules that apply to one asset and not all of them. We’ve been complaining about insider trading in Washington for the last 25 years. So let’s fix all that. We agree, but holding up market structure is actually going to put investors at risk,” he explained.

Belshe also pushed back on the suggestion that BitGo and other industry participants are “dictating” US policy for their own benefit. He said market structure rules are needed to protect investors and make digital asset markets more resilient, while ethics requirements should apply across digital assets, stocks and commodities rather than being limited to one sector.

Belshe said BitGo’s long-term strategy has been to make prime brokerage the company’s main source of revenue, supported by infrastructure built around secure wallets and regulated custody.

He said the company spent years establishing that foundation because advanced financial products cannot be built safely without reliable custody and storage. BitGo is now using that infrastructure to develop structured products, prime brokerage and other financial services on digital rails.

The macro environment is affecting BitGo more through potential new clients than its existing customer base, Belshe said. Institutions considering entering digital assets may lose conviction when risk assets face unfavorable short-term conditions and choose to wait, while clients already invested tend to be less immediately affected.

BitGo is continuing its international expansion, including through its recently launched South Korean joint venture with Hana Bank after receiving a VASP license.

Belshe said regulatory developments in the US have also influenced digital asset policy overseas as countries compete to establish themselves as industry hubs.

On Bitcoin, Belshe said the digital asset remains highly sensitive to the macro environment. He also noted that shifts in the AI market can influence Bitcoin’s short-term performance.

While avoiding a precise year-end price target, Belshe said he expects Bitcoin to move higher from current levels and sees a positive trend ahead.