As the use of and investment in digital assets continues to grow, politicians in the United States are getting together to debate the urgent need for financial system protections in the cryptocurrency business.
Kevin O’Leary, Chairman of O’Leary Ventures, weighs in on regulatory hearings and discusses the dangers and prospects in the cryptocurrency field. O’Leary Ventures has some skin in the game with FTX.
He discusses the absence of safety barriers within the sector, the demise of FTX, and the ways in which firms in the United States might benefit from the employee retention credit.
Although it is unclear what will come out of the negotiations and when the real action will occur on this front, the insights provided by O’Leary imply that a firm hand of regulation is essential to prevent additional enterprises from blowing up.
The collapse of FTX: No guardrails in the crypto industry
O’Leary contends that there was a weekly blow-up of cryptocurrency firms falling to zero prior to the collapse of the FTX exchange. Now, however, the magnitude of the corporations going to zero is expanding, as seen by the fact that Genesis filed again only the week before last.
This pattern will continue as long as there are no barriers to entry in the sector, and as long as every human heart has some measure of greed, there will be possibilities for the issuance of worthless tokens.
O’Leary admits that the business has been unable to successfully self-regulate, despite the fact that he is of the opinion that it would be beneficial in the long run for the heavy hand of regulation to come into play.
According to him, cryptocurrency firms will continue to see explosive growth until there is regulation, which he believes will be beneficial in the long run.
The heavy hand of regulation is coming
According to O’Leary, there has been a shift in Washington’s tone over the last few months, particularly after the FTX hearing, which provided an opportunity to get a sense of how senators felt about the issue at hand.
There is a sense of exhaustion creeping into their thinking, and they are sick of holding hearings every six months when the latest cryptocurrency firm implodes and loses all of its value.
O’Leary implies that more regulations are on the horizon, and he cites the Kraken transaction as an illustration of this trend. Gensler has made it quite apparent that he dislikes staking, and he will just shut the room down if you are unable to read it. If cryptocurrencies can’t be staked, the value of those cryptocurrencies will drop significantly in this situation.
Kevin O’Leary draws to a close his discussion on the failure of FTX, the need for guardrails in the cryptocurrency business, and the impending heavy hand of regulation in the market.
Even though it is unclear what will come out of the regulatory hearings or the deadlines for any activity on this front, the enterprenuer thinks that a firm hand of regulation is essential in order to avoid other enterprises from collapsing in the future.