Major Financial Institutions Not Ready to Invest in Bitcoin, Says Kevin O’Leary
Kevin O’Leary, known for his role on “Shark Tank,” expressed skepticism about major financial institutions’ readiness to invest in Bitcoin. In an interview with CoinDesk, O’Leary stated that these institutions are not showing significant interest in the cryptocurrency. He doubted the possibility of asset management firms like BlackRock and Fidelity launching Bitcoin spot ETFs due to ongoing scrutiny by federal agencies, especially the U.S. Securities and Exchange Commission (SEC).
Legal Challenges and Regulatory Hurdles
O’Leary highlighted the SEC’s legal actions against entities in the crypto space as a deterrent for institutional investors. He emphasized that as long as SEC Chair Gary Gensler continues to sue everyone, institutional interest in Bitcoin will remain low. The SEC has been actively pursuing legal actions against key players in the cryptocurrency industry, leading to challenges for exchanges like Coinbase and Binance.
O’Leary also pointed out the regulatory pressure faced by Binance and questioned the wisdom of financial institutions wanting to engage with such platforms.
The End of Lax Regulation and Crypto Cowboys
O’Leary made these comments on the opening day of Sam Bankman-Fried’s trial, suggesting that lax regulation and “crypto cowboys” are coming to an end. He stressed the need for regulatory clarity in the U.S., stating that without it, the cryptocurrency industry is unlikely to grow as desired.
Potential Shift Away from the U.S.
O’Leary speculated that more transparent and compliant cryptocurrency exchanges may emerge outside of the U.S., diverting institutional interest. He mentioned an upcoming development in Abu Dhabi, where a new digital currency exchange called M2 is being launched. O’Leary described M2 as fully compliant, backed by billions of dollars, and aiming to replace exchanges like FTX and Binance. He suggested that M2 could become the new standard in digital currency exchanges.
Hot Take: Concerns Over Digital Currency Regulation in the U.S.
In a separate interview on Fox Business, O’Leary expressed significant concern about digital currency regulation in the United States. He attended a recent hearing and witnessed intense criticism aimed at SEC Chairman Gary Gensler. O’Leary voiced frustration over Gensler’s regulatory approach, claiming it is causing the U.S. to lose its innovative edge in the crypto space. He also revealed the potential shift of crypto innovation away from the U.S., citing Abu Dhabi’s plan to launch the compliant M2 exchange as a replacement for FTX and Binance.
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