By Larry Wright
Kevin O’Leary, who has gained popularity based on his appearance as the co-host of the reality show Shark Tank, has shed his two cents on FTX.
The billionaire investor has formerly claimed that he did not wish to purchase any Blood Bitcoins mined in China before the national exodus. Now, he has come forward to comment on the fiasco of the FTX exchange.
He has claimed that FTX International has fallen to ground zero. Furthermore, he claims that he is not willing to make new allocations in cryptocurrency ventures until one condition is met.
It is worth noting that he has worked as a paid correspondent of the FTX exchange in the past and has recently come to the conclusion of not being willing to invest anymore in the crypto sector.
Speaking on the matter, Leary recently claimed that his FTX shareholdings have dropped to zero. He further explained that he had made a bad trade deal, and it was not the last time he wanted to make such a decision. He further added that in the trading business, investors place several bets along the way, and some of them pay out while others go bust.
He claimed that with the cryptocurrency sector, institutional investors are waking up to the realization that they must not place any new bets until proper regulations are in place.
To this end, he further exclaimed that what has happened now has impacted others like him. Therefore, he called on the government and agencies like SEC to come forward and play their role in introducing cryptocurrency regulations to protect the interests of the investors.
Stablecoin Transparency Act
The Stablecoin Transparency Act was proposed by Senator Bill Hagerty. The bill could enact regulatory requirements for stablecoins to take advantage of their functional superiority over ACH and SWIFT systems. Leary has claimed that the bill will work towards making transparency for the stablecoin issuers.
He also claimed that institutional investors should put more pressure on state agencies to expedite this process.
Meanwhile, he claimed that stablecoins are already superior to existing digital payment solutions. However, it still needs regulatory requirements such as making it faster, more transparent, and 100% auditable.
If stablecoins adopt rules like 30-day audits and Treasury bill backup for 12 months duration, it would restore the faith of institutional investors in the crypto sector.