Ocrypto cowboys won't be left in the past, says Kevin OLeary

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Ocrypto cowboys won't be left in the past, says Kevin OLeary

Despite the optimism that top institutions on Wall Street are going to step into bitcoin investing, star Kevin OLeary said, this won't happen as long as crypto remains under federal scrutiny.

They don't own any of it, and they're not going to own it while [SEC Chair Gary] Gensler's suing everybody, Mr. Gensler said in a statement on Tuesday.

The SEC has filed several lawsuits against the industry's biggest players, contending that many of the traded tokens are unregulated securities.

The SEC has enacted a major crackdown on Bitcoin exchanges, causing both Coinbase and Binance to be among the targets of a crackdown this past summer.

But O'Leary said there are limited options for firms like BlackRock.

You can't put an ETF on an exchange being sued by the regulator. That's never going to happen, he said.

He said his comments came on the first day of the trial against Sam Bankman-Fried, whose poor management of the FTX exchange led to its collapse last year.

As long as regulations discourage investment in the US, Ocrypto cowboys are quickly being left in the past, noting that as long as regulation discourages investing in the US, the industry won't expand as hoped.

Crypto exchanges in other parts of the globe may become more transparent, potentially sending institutional interest elsewhere.

'It looks like it's going to happen, O'Leary said.