Shark Tank star Kevin O’Leary, aka Mr. Wonderful, has warned that US crypto regulation is “getting very, very aggressive.” Noting that regulators are now “regulating through enforcement, penalties and massive fines,” O’Leary stressed the importance of staying out of the way of the SEC, Chairman Gary Gensler and other regulators.
Kevin O’Leary Shares Crypto Regulation Perspective
Shark Tank star Kevin O’Leary has shared his outlook for the crypto industry following several enforcement actions by the US Securities and Exchange Commission (SEC). Mr. Wonderful tweeted on Monday:
Venture financing for new crypto projects is all but dead and aftermarket trading for existing projects is heavily discounted. Reason? The regulator is now regulating through enforcement, sanctions, and massive fines.
“The venture community has moved on to the next ‘big’ thing, AI,” he added.
O’Leary explained in an interview with Trader TV Live, published on Sunday, that following the collapse of cryptocurrency exchange FTX, US lawmakers are “angry” about having to meet regularly to deal with the failures of cryptocurrency companies. The senators are “fatigued” and “really tired of meeting every six months when the next cryptocurrency company blows up and goes down to zero,” the Shark Tank star described. He believes this is one of the reasons SEC Chairman Gary Gensler recently took a “strong hand” on crypto exchange Kraken over his staking program.
Emphasizing the SEC’s enforcement-focused approach to regulating the crypto industry, O’Leary warned:
That kind of environment is getting very, very aggressive and regulators are being applauded by senators and congressmen saying ‘What is this? We’ve had enough of these things.
O’Leary warned that unregulated cryptocurrency exchanges will be shut down or zeroed out by regulators in the coming years. He is stressed:
You have to get on board with regulation. You have to stay out of the way of Gensler, the SEC and other regulators.
“Those men in Washington are not happy… FTX poked the bear. The bear is awake and angry,” O’Leary concluded.
The Shark Tank star said earlier this month that most crypto tokens are worthless, stressing that they will “eventually only go to zero.” O’Leary recently came under fire from the crypto community for his continued support of disgraced FTX co-founder Sam Bankman-Fried (SBF). Mr. Wonderful received $15 million to become a spokesperson for FTX.
Do you agree with Kevin O’Leary? Let us know in the comments section.
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