Kevin O’Leary of Shark Tank fame has recently provided his perspective on the cryptocurrency sector in response to a number of enforcement proceedings taken by the U.S. Securities and Exchange Commission (SEC).
“Venture funding for new crypto projects is virtually dead and aftermarket trading for existing projects is at massive discounts. Reason? The regulator is now regulating by enforcement, penalties & massive fines. The venture community has moved on to the next “big” thing, AI (Artificial Intelligence),” wrote O’Leary.
In an interview with Trader TV Live that was broadcast on Sunday, O’Leary stated why U.S. politicians are frustrated with having to periodically convene to discuss the failures of crypto enterprises in light of the FTX disaster.
According to O’Leary, senators are sick to death of meeting every six months when the next cryptocurrency company implodes and goes bankrupt. He thinks this is one of the factors behind SEC Chairman Gary Gensler’s recent harsh criticism of cryptocurrency exchange Kraken’s staking programme.
In regards to the SEC’s enforcement method of crypto regulation, O’Leary warned that this type of environment is becoming increasingly hostile — not helping with the fact that the regulators are being praised by the senators and congresspeople.
He added that the regulators’ actions will cause unregulated crypto exchanges to go out of business or hit rock bottom for the following few years. The Shark Tank star emphasised the importance of working closely with regulators if they wish to stay afloat.
