Kevin O’Leary says the latest crypto downturn is about more than Bitcoin’s price. In a post on X, the “Shark Tank” investor said adoption of stablecoins and blockchain technology across insti
Kevin O’Leary says the latest crypto downturn is about more than Bitcoin’s price.
In a post on X, the “Shark Tank” investor said adoption of stablecoins and blockchain technology across institutions has stalled.
His explanation was that companies are still waiting for regulatory clarity before committing.
“The crypto sell off isn’t just about Bitcoin. Adoption of stablecoins and blockchain across institutions has stalled because companies are still waiting for regulatory clarity,” he said.
O’Leary said his own firm already uses USDC, the dollar-pegged stablecoin, for treasury management and cross-border settlement. Many other companies have not followed, he said, because their compliance teams do not yet know what rules they would be operating under.
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He pointed to the GENIUS Act, the stablecoin law passed last year, as a first step. In his view, the CLARITY Act, the broader market structure bill, is needed to unlock the rest.
The post suggests O’Leary sees the weakness in prices as a symptom of a larger bottleneck. Large firms with real capital to deploy are sitting on the sidelines, he argues, and that limits demand across the market, not just for one token.
“We use USDC for treasury management and cross border settlement, but many others won’t move until their compliance teams know the rules. The GENIUS Act was a start. We need the CLARITY Act to unlock the rest,” he added.
The argument is consistent with what O’Leary said before. In Sept, he said he had re-entered the crypto market, putting fresh capital behind what he called the next cycle.
He also highlighted a single development that he believes could mark a turning point for the entire industry.
He said he talks regularly with CEOs across industries about which blockchain they're betting on. But so far, none of them are landing on the same one.
On the CLARITY Act’s Senate setback, O’Leary said he still expects crypto regulation to resurface, since lawmakers are working on tax policy for digital assets. He had said that he did not see a bill passing soon.
For now, O’Leary’s message to the market is the same one he has repeated for months. Until the rules are written, he says, institutional money is unlikely to move in any meaningful way.
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