Investor and Shark Tank personality Kevin O’Leary says the current cryptocurrency crash is connected to issues beyond Bitcoin’s falling price, with U.S. regulatory uncertainty slowing institutional adoption of blockchain and stablecoin technology.
O’Leary, often known as “Mr. Wonderful,” said big financial firms remain reluctant to commit capital until rules are clear. He described institutional crypto adoption as having slowed to a crawl.
“It’s not just about Bitcoin in the crypto sell-off. The adoption of stablecoins and blockchain within institutions has slowed down. Companies are waiting for clarity on regulations,” O’Leary wrote.
Stablecoin use versus compliance concerns
O’Leary said his own company already uses Circle’s USDC for treasury management and international settlements. But he added that many other companies are hesitant to follow because their compliance teams are unsure about the regulatory landscape.
“We use USDC for treasury management and cross-border settlement. But many others won’t do it till their compliance guys know the rules,” he added.
Focus on two U.S. bills
O’Leary pointed to two major U.S. cryptocurrency bills: the GENIUS Act and the CLARITY Act.
“We got the GENIUS Act going. We need the CLARITY Act for the rest,” O’Leary concluded.
Earlier Bitcoin warnings
The investor has previously raised concerns about the crypto space and the reasons Bitcoin has not attracted more institutional investment. On Oct. 28, he identified two main issues affecting Bitcoin: regulatory uncertainty and the rising threat of quantum computing.
