Kevin O’Leary has come a long way from the time he called Bitcoin “garbage.”
Now, the Shark Tank judge tells Moneywise, cryptocurrency-related assets make up 19.4% of his portfolio. Besides coins and tokens, he also owns stakes in “picks and shovels” — that is, platforms and exchanges that deal in crypto.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
The entrepreneur says he changed his mind about the asset as regulators around the world came on board. However, it hasn’t been enough to convince most institutional investors, like sovereign wealth and pension funds, to dip their toes in.
“I never thought I’d say this, but I want more regulation, and I want it now,” O’Leary said at the beginning of his keynote speech at the Consensus crypto conference in Toronto.
“After almost two decades of growth in the crypto industry, we have hit a wall. We have hit a wall on AUM (assets under management).”
On the other side of that wall lies a trillion-dollar prize, he believes — but it all hinges on Congress passing two key bills.
A new era of cryptomania
Like many cryptocurrency supporters and investors, O’Leary believes the space is on the cusp of something big.
The industry is abuzz with anticipation. Optimism about the future of crypto under the Trump administration has helped drive the price of Bitcoin past $110,000, an enormous jump after it spent much of 2024 hovering below $70,000.
Coinbase, the largest American company in the space, has been one of the biggest winners. The SEC dropped a lawsuit against the company in February, and the stock secured itself a position in the prestigious S&P 500 index.
Crypto now holds a place in many retirement portfolios, you can invest in Bitcoin and Ethereum ETFs, and the days of “regulation by enforcement” — a common complaint against the previous administration — appear to be over.
But it will take a lot more to win institutional capital, which O’Leary says would give consumers more access. He argues regulation will be a form of dialysis that will clean the system of bad assets.
“When the regulatory environment is clear … the volume of capital that will come into the top five tokens is going to be like a vortex sucking cash out of the crap at the bottom,” he said.
Supporting stablecoins
O’Leary says he spends a lot of time in Washington these days, and he’s focused on two bills.
The first, the GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act, establishes a regulatory framework for stablecoins — digital tokens that are pegged to fiat currencies, which makes them in theory more “stable” than ordinary digital currencies.
O’Leary has said he owns USDC, a stablecoin issued by a company called Circle, which he also owns shares in.
This bill, which analysts say could grow the market to $2.5 trillion, was recently advanced in the Senate after some hiccups and is headed to a final vote. Sen. Elizabeth Warren claims the bill would “accelerate Trump’s corruption” since a firm he backs has its own stablecoin.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
On stage in Toronto, O’Leary gave his best sales pitch on how stablecoins could revolutionize digital payment systems by making money transfers lightning fast and cheaper.
“Currency trading is a multitrillion-dollar market. And it’s old and ugly and inefficient,” said O’Leary, emphasizing that banks “suck fees on both ends” to move capital around the world.
“The biggest threat to that monopoly or oligopoly, if you want to call it that, is a stablecoin that’s regulated.”
He pointed out that stablecoins can also reduce costs for businesses that currently have to pay credit card companies fees on every transaction.
Big Tech is already eyeing it, with Meta reportedly looking for partners, according to Fortune.
Commodity or security?
O’Leary said as soon as the GENIUS Act is passed there will be momentum to pass the second key piece of legislation, which is being called the market structure bill.
Earlier in May, the House Committees on Financial Services and Agriculture released a discussion draft for it. This would create a comprehensive framework for all digital assets, but most importantly, it would define each as a commodity or security.
O’Leary predicted that once this bill passes, “Katie bar the doors, a trillion dollars will come in and index [Bitcoin].”
Whether this is an exaggeration no one can say, but according to an EY and Coinbase survey conducted in January of mainly U.S. institutional investors, an uncertain regulatory environment was the top concern for investing in digital assets, and more clarity was seen as a top catalyst of growth.
The main issues that investors sought clarity on were crypto custody rules (50%), treatment of digital assets as a commodity vs. security (49%) and tax treatment (46%). Twenty-six percent said the treatment of stablecoins and tokenized fiat was the most important area.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
