Shark Tank investor Kevin O’Leary has said that the crypto market needs the support of policymakers to get out of its current rut.
According to him, if stablecoins should get the support of US policymakers, more institutional capital could come into crypto, pushing Bitcoin prices higher.
“I also believe that the one thing – just getting stablecoins [regulations] done… It’s the lowest-hanging fruit, but it would also signal to the rest of the crypto market, primarily the institutional investor market.”
O’Leary also spoke about the decline in Bitcoin price, saying that this is due to the cryptocurrency losing momentum for adoption. “There is fatigue in this market now. And there’s a lack of adoption, and there’s a lack of wallets,” he said.
Kevin O’Leary was an active critic of cryptocurrency in 2017. But according to him, he had to change his views when the clients started asking for it, and he saw the efficiency of stablecoins for international payments.
The need for stablecoin regulation
O’Leary hammered on the necessity of stablecoins regulations saying, “We are in a difficult area now because we lack regulation.”
He added that Bitcoin would remain stuck in the $17k – $22k range unless there is institutional support. But this institutional support can only come in if stablecoins are regulated.
On his part, Allaire added that regulations for stablecoins are currently in the works and will soon be ready at the federal level. According to him, the Federal Reserve should be the one to regulate stablecoins.
Next wave of adoption
O’Leary also talked about adoption and how the complex nature of wallets has limited adoption.
He added that he has now seen the wealth of opportunities in the sector. He continued that the crypto markets would be massive within the next decade due to the sector’s high productivity, transparency, and opportunities compared to other financial services.
Allaire agreed with this view, saying that for the next wave of adoption, there is a need to focus on user experience and safety. “the crypto of it has to go into the background,” he said.
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