- Renowned entrepreneur and host of the television program “Shark Tank,” Kevin O’Leary, shared his doubts about large financial institutions being ready to invest in Bitcoin in an interview with COINOTAG on October 3, 2023.
- The SEC has initiated legal proceedings against significant players in the crypto industry and has argued that many tokens should be classified as unregulated securities.
- O’Leary’s comments were made on the first day of the trial related to the mismanagement of the FTX exchange, which led to its collapse last year, involving Sam Bankman-Fried (SBF).
Kevin O’Leary, the well-known entrepreneur and host of the television program “Shark Tank,” explained why he believes that corporations are not interested in Bitcoin.
Bitcoin Has Yet to Gain Trust from Corporations
In an interview with COINOTAG on October 3, 2023, Kevin O’Leary, the renowned entrepreneur and host of the television program “Shark Tank,” shared his doubts about large financial institutions being ready to invest in Bitcoin. Contrary to common belief, O’Leary stated that these institutions have not actually shown significant interest in cryptocurrencies.
O’Leary expressed his reservations about the possibility of asset management companies like BlackRock and Fidelity launching the first Bitcoin spot ETFs. He attributed this to the continuous regulatory scrutiny of the crypto sector by federal agencies, particularly the U.S. Securities and Exchange Commission (SEC). O’Leary suggested that institutional investors would continue to wait, stating:
“You know, people say, ‘There’s great institutional interest in Bitcoin.’ No, there isn’t. None of them own it, and they won’t as long as Gensler sues everybody.”
The SEC has initiated legal proceedings against significant players in the crypto industry and has argued that many tokens should be classified as unregulated securities. This has resulted in lawsuits against both major crypto exchanges, Coinbase and Binance, for regulatory violations.
O’Leary pointed out that these legal issues pose a significant obstacle for companies when selecting a platform for a potential ETF. He emphasized that it is currently impossible to list an ETF on an exchange facing legal action from regulatory authorities.
Additionally, O’Leary questioned whether it would be wise for any financial institution to collaborate with a platform if Binance’s co-founder, Changpeng Zhao, is facing significant regulatory pressure.
O’Leary’s comments were made on the first day of the trial related to the mismanagement of the FTX exchange, which led to its collapse last year. O’Leary stated that the era of loose regulations and “crypto cowboys” has come to an end. He emphasized that without regulatory clarity in the United States, the crypto industry won’t grow as expected.
O’Leary is also concerned about regulations
Furthermore, O’Leary expressed significant concerns about the state of digital currency regulations in the United States. He mentioned witnessing intense criticism of SEC Chairman Gary Gensler during a recent digital currency listening session, saying that Gensler was “roasted like a chicken.” This underscores the intensity of regulatory oversight. O’Leary expressed his discomfort with Gensler’s regulatory approach and stated that this approach has caused the United States to lose its innovation edge in the crypto space.
O’Leary also mentioned that a new digital currency exchange called M2 is set to open in Abu Dhabi soon. He stated that this exchange aims to be fully compliant and is backed by billions of dollars. O’Leary emphasized that M2 will offer transparent and stable ownership. He suggested that M2 could become a major exchange facing fewer regulatory hurdles compared to two major exchanges, FTX and Binance, in the United States. He particularly highlighted the need for an exchange for the liquidity of cryptocurrencies like Bitcoin and claimed that M2 could set a new standard for digital currency exchanges.
