Shark Tank investor Kevin O’Leary argues that US institutional investors are reluctant to invest client money without regulatory clarity, and Taylor Swift avoided legal action because FTX collapsed first.
O’Leary claims that cryptocurrency is “dead” for institutional investors because sovereign wealth and pension funds “won’t touch” cryptocurrencies without regulations.
O’Leary says the Coinbase lawsuit won’t precipitate regulation
He said that Coinbase’s recent lawsuit against the US Securities and Exchange Commission (SEC) will do nothing to incentivize regulation. The Coinbase case asks the Securities and Exchange Commission whether it would consider creating new rules for cryptocurrency in the United States
While most of the cryptocurrency bills awaiting congressional approval have stalled, O’Leary is optimistic about the new bipartisan stablecoin bill.
“The only ongoing narrative on (Capitol Hill) that I support (is) on digital payment systems (to get) stablecoins to make transactions to replace the SWIFT system with an ACH system.”
He expects Bitcoin to trade between $17,000 and $35,000 for a long time, with the same traders trading back and forth.
“There’s no new money coming in,” he said opened.
Initially skeptical of crypto, Kevin O’Leary announced in 2021 that he had invested 3% of his portfolio in Bitcoin. O’Leary has it too I invested in Canadian cryptocurrency company WonderFi.
He received $15 million plus an ownership stake in FTX and FTX.US to be their ambassador and spokesperson. He reportedly lost $9.7 million when FTX filed for bankruptcy last year.
Taylor Swift survived the lawsuit because FTX collapsed first
O’Leary said the only reason Taylor Swift didn’t sign a $100 million deal with FTX was because the stock market crashed before she could do so.
Attorney Adam Moskovitz, who is representing investors in a class action lawsuit against FTX and the celebrity promoters, claimed Swift declined on the grounds of uncertainty surrounding FTT’s security situation.
Other celebrities implicated in the lawsuit include former NFL star Tom Brady, basketball icons Shaquille O’Neal and Steve Curry, comedian Larry David, and O’Leary himself.
The suit states,
“None of these defendants conducted any due diligence before marketing these FTX products to the public.”
Last week, a US judge banned influential cryptocurrency Ben Armstrong, alias BitBoy, from issuing incendiary tweets and emails to Moskovitz. Armstrong is also one of the defendants in the class action lawsuit.
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