Regulation
Wall Street’s Bitcoin Adoption Is Being Hampered by Regulatory Scrutiny, Says Shark Tank Expert
In recent news, Kevin O’Leary, a prominent figure on “Shark Tank,” has expressed doubts about the likelihood of major Wall Street institutions investing in Bitcoin. Benzinga note that this skepticism emerges despite recent moves by asset managers such as BlackRock and Fidelity to establish Bitcoin Spot ETFs.
During a Interview with CoinBaseO’Leary expressed his concerns about the current federal oversight of the cryptocurrency industry, led by SEC Chairman Gary Gensler. He believes this oversight is a major deterrent to these institutions.
“They own nothing and they won’t own anything until Gensler sues everyone,” O’Leary said.
The SEC has recently launched several lawsuits against major players in the industry, including cryptocurrency exchanges Coinbase and Binance. The argument is that many tokens traded are unregulated securities. O’Leary suggests that this lawsuit limits options for companies like BlackRock, calling into question the feasibility of launching an ETF on a regulated exchange.
O’Leary also touched on the decline of Binance and the intense pressure on its co-founder Changpeng Zhao. He questioned the likelihood of institutional involvement under such circumstances.
Additionally, O’Leary commented on the ongoing trial of Sam Bankman-Fried, whose mismanagement led to the collapse of the FTX exchange last year. He suggested that the era of “crypto cowboys” is coming to an end, and without regulatory approval in the United States, the industry may not expand as expected. It is understandable that he is cautious about the current state of cryptocurrencyas he reportedly personally lost just under $15 million in that crash.
Despite the skepticism, O’Leary hinted at the possibility of more transparent cryptocurrency exchanges emerging in other parts of the world. These could potentially attract institutional interest. However, the current regulatory environment in the United States appears to be a significant barrier for major Wall Street institutions to invest in bitcoin.
This story It was produced by Benzinga and reviewed and distributed by Stacker Media.