O’Leary Predicts Crypto Innovation Will Leave the U.S.
According to Shark Tank investor Kevin O’Leary, also known as Mr. Wonderful, regulatory hurdles could drive crypto innovation away from the United States. In an interview with Fox Business, O’Leary expressed his concerns about the future of the U.S. crypto industry following a congressional hearing where U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler faced intense scrutiny over crypto regulation.
Congressional Hearing and O’Leary’s Observations
O’Leary revealed that he personally attended the congressional hearing and witnessed Gensler being questioned by Congress members. He described it as a relentless grilling, stating that he saw Gensler “get fried like a chicken.” O’Leary praised Gensler’s fortitude in enduring the abuse he received during the hearing.
Gensler’s Impact on Innovation
O’Leary pointed out that U.S. lawmakers are unhappy with Gensler because they believe he is hindering innovation in the crypto industry. The SEC, under Gensler’s leadership, has taken enforcement actions against major crypto exchanges in the U.S., including Coinbase and FTX. O’Leary emphasized that this regulatory approach is driving innovation away from the country.
The Rise of Non-U.S. Exchanges
O’Leary warned that while the U.S. is losing its position as an innovation hub, other countries are stepping up to take its place. He highlighted Abu Dhabi’s plan to launch a new exchange called M2, which will be fully compliant and backed by significant funds. O’Leary predicted that non-U.S. exchanges like M2 will become the new standard in the industry due to Gensler’s actions against U.S. exchanges.
The UAE as the New Capital of Capital
O’Leary emphasized that Abu Dhabi is positioning itself as a competitor to the U.S., proclaiming, “We are the new capital of capital, and we’re coming to compete.” He stated that if innovation cannot thrive in the U.S., it will move to places like the United Arab Emirates (UAE). O’Leary noted that major financial institutions like Fidelity and Blackrock are unhappy due to Gensler’s actions against Coinbase, as it hinders their ability to offer ETFs.
Hot Take: Crypto Innovation at Risk of Leaving the U.S.
Shark Tank investor Kevin O’Leary, also known as Mr. Wonderful, has expressed concerns that regulatory obstacles in the United States may drive crypto innovation away from the country. O’Leary witnessed SEC Chairman Gary Gensler being grilled during a congressional hearing and believes that lawmakers are unhappy with Gensler for impeding innovation. He highlighted the enforcement actions taken against major U.S. crypto exchanges by the SEC and warned that this approach is causing innovation to move elsewhere. O’Leary pointed out Abu Dhabi’s plans to launch a compliant exchange called M2, positioning itself as a competitor to the U.S. He emphasized that non-U.S. exchanges could become the new industry standard, with Abu Dhabi becoming the new capital of capital.
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