Kevin O’Leary / Getty Images
The TV presenter first mentioned stablecoins. O’Leary claims that stablecoins currently carry far lower financial risks compared to other crypto-assets, as they are less volatile due to being pegged to national currencies, writes Bits.media.
The investor referred to last year’s US GENIUS Act on the regulation of stablecoins. The Act obliges issuers to build up reserves of liquid assets, meaning that the reliability of stablecoins depends on the quality of the reserves, the issuer’s reputation and the redemption terms.
Given that stablecoins are backed by US Treasury obligations, they are, in essence, fully-fledged digital money, O’Leary stated.
The TV presenter singled out Bitcoin as a separate category, describing it as a riskier and more volatile asset. Bitcoin’s legal status remains undefined, as Congress has not passed the CLARITY bill, which would allocate oversight of the crypto market between financial regulators and regulate payouts to stablecoin holders, the businessman explained.
Due to the lack of clarity regarding the regulation of the crypto industry, large companies are wary of investing in Bitcoin, the billionaire claims.
O’Leary identified a third category of assets as ‘blockchain tokens’, citing Ether as an example. The investor compared blockchain technology to enterprise software. There has been talk of blockchain for twelve years now, but in practice it is hardly used anywhere.
In O’Leary’s view, demand for native tokens on various networks will depend precisely on the widespread adoption of blockchains by large corporations, rather than on speculation in the cryptocurrency market.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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