Kevin O'Leary, host of Shark Tank and veteran investor, predicted that Congress will revisit market-structure legislation for cryptocurrency after the midterm elections, potentially as soon as the first or second quarter of next year.
Speaking at the Avalanche Summit in New York on Thursday, O'Leary addressed the recent Senate vote on the Clarity Act, which failed to advance with 49 of the 60 votes needed to proceed. He characterized the failed vote as a temporary setback rather than a permanent defeat for the legislation, which aims to establish a federal framework for crypto markets and clarify the roles of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
O'Leary pointed to concurrent tax legislation as a key driver for renewed interest in market-structure rules. The House Ways and Means Committee advanced the Digital Asset Tax Certainty Act, which seeks to establish tax rules for staking, mining, small crypto transactions, and broker requirements.
"Once you tax, you've got to have policy," O'Leary said, arguing that the introduction of tax rules on crypto activities would create pressure for regulatory clarity on those same activities.
He expects lawmakers from either party to eventually return to market-structure legislation once tax rules are in place, as the need for corresponding policy frameworks becomes apparent. O'Leary predicted this return would occur within the first or second quarter following the midterm elections.
