Shark Tank Star makes a controversial conversation about Crypto’s future

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Regulations on cryptocurrency are a sensitive issue, but Kevin O’Leary thinks it would be a good thing.

Important points

• Kevin O’Leary continues to invest in cryptocurrency during the bear market.
• The Hi thank you star believes that legislation will be beneficial for crypto.
• In the long run, he predicts that crypto will become one of the major business sectors.

Although cryptocurrency prices have fallen this year, Hi thank you star Kevin O’Leary is still positive in the market. In an interview in June, he said that he does not sell his holdings, and that he actually buys several of some major cryptocurrencies. However, he also stated that the current bear market is proof that legislation on cryptocurrency is necessary.

For many enthusiasts, cryptocurrency and government regulations go hand in hand with oil and water. Cryptocurrency was originally designed as a currency that did not require any form of central authority, such as a government or a financial institution. But O’Leary believes legislation is exactly what the market needs.

Why Kevin O’Leary wants government legislation on crypto

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, resulting in enormous volatility. It is first and foremost retail investors who buy through cryptocurrencies and stockbrokers.

While O’Leary says the market will return eventually, he believes volatility is given when crypto is unregulated. If the government’s guidelines were in place, it would lead to several large organizations investing in the best 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 will first look at policies on stablecoins, cryptocurrencies that try to track the value of another asset, most often the US dollar. It seems like a natural place to start, given that investors have just lost huge amounts of money with the recent collapse of TerraUSD stablecoin.

Regulations on cryptocurrency are a challenging and controversial topic

O’Leary is far from the only major investor who wants to see crypto regulations, and it’s easy to see why. The lack of rules in cryptocurrency can be problematic for investors of all sizes. There is insider trading, all kinds of cryptocurrency fraud and extremely high volatility.

Institutions have been reluctant to invest in cryptocurrency since it is unregulated. While they have warmed up to the idea over time, we will probably see far more organizations buying cryptocurrencies if there were regulations in place. Regulations will also protect retail investors, many of whom have been victims of fraud or projects that do not deliver.

However, it is also easy to see why cryptocurrency enthusiasts would oppose any form of regulation. Decentralization has been a central part of crypto from the beginning, and government regulation goes against that ethos.

I understand the appeal of decentralization, and that’s one of the things I like about cryptocurrency. But some type of regulation seems inevitable at this point. Governments have already taken steps to ensure that investors pay cryptocurrency tax. The White House plans to adopt guidelines aimed at crypto. It is probably not a question of if, but when we see stricter regulations for cryptocurrency.

O’Leary is enthusiastic about the future of cryptocurrency

Not all cryptocurrencies will like O’Leary’s regulatory demands, but most will be happy with his predictions for the future of the market. He believes that within the next 10 to 12 years, cryptocurrency and blockchain technology will be the 12th major sector in the stock market. It’s quite a change of heart, since he used to be a vocal critic of cryptocurrency.

Cryptocurrency is still very new, and despite the recent bear market, it has a lot of potential. Although the idea of ​​regulating crypto is controversial, it is something that can bring in far more large investors and help the market grow.