O’Leary’s Concerns over US’s Crypto Regulation Approach
Globally famed Shark Tank host and star, Kevin O’Leary, has not been pleased with how people at US regulators are approaching crypto regulations.
He took note of several un-invited and out-of-the-blue enforcement actions which the regulators have taken recently against the crypto industry. In this connection, he categorically criticized US Securities and Exchange Commission (SEC).
O’Leary posted a tweet on Monday in which he stated that new crypto projects have been failing in raising capital funding.
He also pointed out that aftermarket crypto trading has become over-discounted which has put the existence of ongoing projects in jeopardy.
He criticized that instead of regulating, regulators look more interested in imposing fines, and penalties and penalizing the projects. As per him, this is not the right approach from the regulators.
They must be focused on bringing reforms to the cryptocurrency industry. Instead, they have made the lack of crypto regulatory compliance, an excuse to fine the crypto projects.
They are just going after them imposing fines and getting money out of them. The fines and charges implemented on crypto projects are very high and the regulators seem to be benefitting from that.
Consequently, existing and even future projects are forced into making a shift from crypto to AI-based projects, claimed O’Leary.
SEC’s Chairman Acting In Bias against Crypto
Shark Tank host, O’Leary, was interviewed by Trader TV in the recent past, where he talked about FTX and its contagion.
During that interview, he also spoke about US lawmakers and their approach toward forming crypto regulations. He stated that the regulators have to come up with regulations that are firm and streamlined.
He stated that lawmakers are fed up with attending unfruitful meetings. He said that they don’t know how to address the issues which arise after the collapse of a crypto project.
He further suggested that lawmakers also feel tired of meeting each other after a certain time and arrive at ‘no way forward’.
O’Leary suggested that ‘perhaps this is the reason why SEC, under Chairman Gary Gensler, has been acting in bias against the crypto project.
He particularly made mention of ‘Kraken’ whose staking feature had recently been suspended by the orders of SEC’s Chairman. He seemed inclined that Gensler took this action so as to please the lawmakers in somewhat manner.
O’Leary’s Warning For Regulators
O’Leary is certainly not happy with how the affairs of crypto projects have been handled by SEC. He simply disregarded SEC’s efforts on the pretext that they are ‘fruitless efforts’.
He warned that regulators’ dealing with crypto projects is becoming more and more aggressive every day. He criticized that regulators are enjoying when they are appreciated by lawmakers for taking extreme enforcement action.
He sent a warning to decentralized exchanges by suggesting that the regulators’ next target is ‘unregulated exchanges’.
He warned that regulators would soon come after them and end their businesses if they opt not to come under regulatory oversight.
He insisted that there shall be a ‘zero tolerance’ policy which shall be implemented by regulators in letter and spirit. He suggested such firms either stay out of the trouble or get ready to be ripped off completely.
O’Leary’s Viewpoint over Circumstances Emerging after FTX’s Collapse
O’Leary explained that the giant (i.e. SEC) was sleeping until its sleep was disturbed by FTX. ‘Now that the giant is awake so be ready to be trampled down’, warned O’Leary.
It seems as if O’Leary has a piece of advice for crypto projects as well as for the regulators. He is obviously not taking anybody’s side and seems to be acting neutral.
Clearly, he is of the view that regulators would not be as polite as they were before. Instead, they would ensure that enforcement action is taken and implemented at all costs.