Shark Tank Superstar Believes Crypto Bull Market Will Start After This One Event
Well-known Canadian businessman and TV personality Kevin O’Leary, also known as Mr. Wonderful, argues that when a particular stablecoin bill is passed and “institutions smell politics, then you have a real step up”, and that’s when Bitcoin (BTC) breaks out of the $19,000-$22,000 trading range.
The Shark Tank star appeared on Crypto Banter YouTube channel, where he discussed the Stablecoin Transparency Act, which he says has a chance of being passed by the US Congress “very quickly” after November 8, the date of the midterm elections.
As reported, the push for stablecoin regulation follows the massive collapse of Terrawhich is a protocol that powered the algorithmic stablecoin UST.
While not directly concerning Bitcoin, O’Leary argued, the “tone of the regulation” is relevant, adding:
“This law is very simple in nature, and that’s why it can be passed. It’s bipartisan, and the reason it’s the case is that it actually makes the US dollar the default payment system around the world — that everyone can get behind.”
The USD-backed stablecoin issuers will be able to obtain a license in the US if they are willing to go through the accompanying “scrutiny”.
O’Leary claimed that
“Although it has nothing to do with Bitcoin, it will be the first regulation passed by US regulators, and I would argue that you will be long with Bitcoin to go into that outcome.”
He said there would be “a lot of interest for institutional capital to come into” stablecoins, such as the USD coin (USDC). The coin’s issuer, Circle, O’Leary noted, has already received millions in investments. Back in April, it said it had agreed to a $400 million funding round with investment from BlackRock, Inc., Fidelity Management and research, Marshall Wace LLPand Fine Capital. It also announced a valuation of $9 billion in February this year, up from $4.5 billion in July 2021.
The Shark Tank star concluded that,
“So at the end of the day, regulations come, Bitcoin goes up. […] “If institutions smell politics, then you have a real step up, and that’s when you break out of this $19,000-$22,000 trading range against the US dollar. I think it goes right through that very quickly.”
When it comes to the upcoming elections, if there were any trouble between the House and the Senate, it would result in “nothing done in Washington”, including “no more money bills” – which is good for the stock markets, but “indifferent” for Bitcoin and crypto in general, O’Leary claimed.
The reason is that the bills floating around regarding crypto are all bipartisan, he said — both Democrats and Republicans support some form of crypto regulation. Therefore, which party controls which chamber becomes less relevant, he suggested. The regulations are coming.
At 10 UTC Monday morning, BTC was trading at $19,342, down 0.5% on the day and up 1.5% on the week. It was down 2% in a month and 68% in a year.
You can see the discussion here:
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Learn more:
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– Galaxy Digital’s Novogratz doubts Bitcoin will pass the $30,000 barrier anytime soon
– Bitcoin and hard assets will win when inflation rises, Novogratz says, seeing BTC at $500,000
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– Kevin O’Leary calls for crypto regulation
