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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” — or platforms and exchanges that deal in crypto.
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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, according to O’Leary — but it all hinges on Congress passing two key bills. And the first, the Guiding and Establishing National Innovation in U.S. Stablecoins Act (GENIUS), was just passed by the Senate.
A new era of cryptomania
Like many cryptocurrency supporters and investors, O’Leary believes the space is on the cusp of something big.
“I consider crypto to be the 12th sector of the economy within five years,” O’Leary said in an interview with CoinDesk.
The industry is abuzz with anticipation. Optimism about the future of crypto under the Trump administration has helped drive the price of Bitcoin past $104,000 — 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 them 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. In March, the FDIC cleared U.S. banks to engage in crypto-related activities provided they manage risk appropriately.
For those looking to get into the crypto market you could start with Gemini, which was one of 2024’s best crypto exchanges according to Forbes.
Gemini is a full-reserve and regulated cryptocurrency exchange and custodian where you can buy, sell and store over 70 vetted cryptocurrencies. This means you can choose coins that suit your confidence level.
You can snag $15 in free Bitcoin with code GEMINI15 when you trade $100 or more as a new user. However, the trade needs to be revenue-generating for Gemini — meaning no stablecoin or withdrawal-deposit shuffling. Just remember to act fast, the promotion is only good for 30 days after creating a new account.
What’s more, you can earn up to 5.32% APR when you stake your crypto on Gemini. Staking is a process where you use part of your wallet to help an exchange confirm other transactions, then get a little bit back for helping out.
If you don’t want to actively invest in cryptocurrencies, you could instead apply for the Gemini Credit card. With no annual fees, you can earn crypto on every purchase made with the credit card.
The best part? You can earn $200 in crypto rewards when you spend $3,000 on the Gemini credit card within your first 90 days.
Supporting stablecoins
O’Leary said he spends a lot of time in Washington these days, and he’s focused on two bills that could change the face of cryptocurrency in the U.S.
The first, the GENIUS (Guiding and Establishing National Innovation in U.S. Stablecoins) Act, received bi-partisan senate support in a 68-30 decision on June 17. It establishes a regulatory framework for stablecoins — digital tokens that are pegged to fiat currencies, which in theory makes them more “stable” than other digital currencies. From here, the GENIUS Act will need House approval.
O’Leary has said he owns USDC, a stablecoin issued by a company called Circle, which he also owns shares in.
GENIUS could grow the market to $2.5 trillion, according to some analysts. But Sen. Elizabeth Warren has claimed 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,” O’Leary said, 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 fees on every transaction.
Big Tech is already eyeing stablecoin, with Meta reportedly looking for partners, according to Fortune.
Commodity or security?
The second key piece of legislation O’Leary wants to see passed is the Market Structure bill.
Earlier in May, the House Committees on Financial Services and Agriculture released a discussion draft. 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 from January of mainly U.S. institutional investors, an uncertain regulatory environment was the top concern for investing in digital assets. More clarity was seen as a top catalyst for growth.
The main issues that investors sought direction 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.
Consulting with a financial advisor can help you navigate the nuances of investing in complex assets like cryptocurrencies.
With Advisor.com, you can connect with vetted FINRA/SEC-registered advisors near you for free. The process is simple: just answer a few basic questions regarding your finances and future goals, and Advisor.com will match you with a reputable expert near you.
Advisor.com’s roster of financial professionals is made up of fiduciaries, meaning they are legally required to act in your best interest.
Once you find your match, you can set up an introductory meeting with no obligation to hire to see if they’re the right fit.
After all, a good financial investor can be a lifelong commitment.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
