Regulating cryptocurrency is a difficult topic, but Kevin O’Leary thinks it would be a good thing.
- Kevin O’Leary continues to invest in cryptocurrency in the bear market.
- That haj tank star believes that legislation would be beneficial for crypto.
- In the long run, he predicts that crypto will become one of the main industries.
Although cryptocurrency prices have fallen this year, haj tank star Kevin O’Leary is still optimistic about the market. In an interview in June, he said he did not sell his holdings and actually bought more, larger cryptocurrencies. However, he also said that the current bear market is proof that legislation on cryptocurrency is necessary.
For many enthusiasts, cryptocurrency and government regulations go together like oil and water. Cryptocurrency was originally designed as a currency that did not require any kind of central authority, such as a government or financial institution. But O’Leary believes the legislation is exactly what the market needs.
Why Kevin O’Leary wants government crypto legislation
O’Leary argues that cryptocurrency needs regulation because it will attract more institutional investors and help stabilize the market. Right now, he says, cryptocurrencies are under-owned by institutions, leading to huge volatility. These are mostly retail investors who buy through crypto apps and stockbrokers.
While O’Leary says the market will eventually return, he believes volatility is given when crypto is unregulated. If government policies were in place, it would get more large organizations to invest in large cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Polygon (MATIC).
Ideally, O’Leary hopes for political discussions on crypto after the midterm elections. He would first like to see the policy for stablecoins, cryptocurrencies that try to track the value of another asset, most often the U.S. dollar. This seems like a natural place to start, given that investors have just lost huge amounts of money with the recent collapse of stablecoin TerraUSD.
Regulating cryptocurrency is a difficult and controversial topic
O’Leary is far from the only major investor wanting to see cryptocurrency, and it’s easy to see why. The lack of cryptocurrency rules can be problematic for investors of all sizes. There is insider trading, all kinds of cryptocurrency scams and extremely high volatility.
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Institutions have been slow to invest in cryptocurrency because it is unregulated. Although they have become familiar with the idea over time, we would probably see many more organizations buy cryptocurrencies if there were rules in place. The rules will also protect retail investors, many of whom have been victims of fraud or failed ventures.
However, it is also easy to see why cryptocurrency enthusiasts would be against any kind of regulation. Decentralization has been an important part of crypto since the beginning, and government regulation goes against this philosophy.
I understand the attraction of decentralization, and that’s one of the things I love about cryptocurrency. But some form of regulation seems inevitable at this point. Governments have already taken steps to ensure that investors pay taxes on cryptocurrencies. The White House plans to adopt policies aimed at crypto. It’s probably not a question of if, but when we will see stricter cryptocurrency rules.
O’Leary is excited about the future of cryptocurrency
Not all crypto supporters will appreciate O’Leary’s calls for regulation, but most will be happy with his predictions for the future of the market. He believes that over the next 10 to 12 years, cryptocurrency and blockchain technology will be the 12th major sector in the stock market. This is something of a change of heart when he was once a vocal critic of cryptocurrency.
Cryptocurrency is still very new, and despite the recent bear market, it has great potential. Although the idea of regulating crypto is controversial, it is something that could attract many more large investors and help the market grow.
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