Kevin O’Leary Questions Wall Street’s Bitcoin Adoption Due to Regulatory Challenges

In recent news, Kevin O’Leary, known from “Shark Tank,” has expressed skepticism about major Wall Street institutions investing in Bitcoin. Despite efforts by asset managers like BlackRock and Fidelity to create Bitcoin spot ETFs, O’Leary cites ongoing federal scrutiny by SEC Chair Gary Gensler as a significant deterrent. He emphasized that institutions are unlikely to invest while the SEC is actively pursuing lawsuits against major crypto exchanges such as Coinbase and Binance, arguing that many traded tokens are unregulated securities.
O’Leary also discussed the declining status of Binance and the pressures on its co-founder, Changpeng Zhao, as further hindrances to institutional investment. Additionally, he mentioned the trial of Sam Bankman-Fried, whose mishandling led to the collapse of the FTX exchange, signaling an end to the era of “crypto cowboys.” O’Leary posits that without regulatory approval in the US, the cryptocurrency industry may not grow as anticipated.
Despite his reservations, O’Leary hinted at the potential for more transparent crypto exchanges in other parts of the world, which could attract institutional interest. However, the current US regulatory environment remains a significant barrier for major Wall Street institutions to invest in Bitcoin.