Kevin O’Leary Warns CLARITY Act Delay Is Stalling Stablecoin Adoption And Crypto Markets

• According to Kevin O'Leary, adoption of stablecoins and blockchain had halted.
• He said the crypto sell-off was not just about Bitcoin.
• O'Leary added that it was because the companies were waiting for regulatory clarity.

Investor Kevin O'Leary, popularly known as “Mr Wonderful,” said institutional adoption of stablecoins and blockchain had "stalled," as companies waited for clear U.S. rules on crypto. He added that this was why the crypto market’s performance has been weak.

O’Leary explained on X on Wednesday, “The crypto sell-off isn't just about Bitcoin," and the adoption of stablecoins and blockchain across institutions had halted because companies were “still waiting for regulatory clarity." 

Read Next

INTC, BABA Shares Slide Over Links To Firm Tied To Suspected Chinese Spy

Yuvraj Malik

Speaking on a television segment on FINTECH.TV, O’Leary said, “So the reason you've seen it sell off in crypto and it hasn't performed that well is the adoption has stalled out beyond just Bitcoin and other blockchains.”

O'Leary added existing law has only gone part of the way. "The GENIUS Act was a start,” and with the Digital Asset Market Clarity Act (CLARITY Act), the rest could be “unlock[ed].”

USDC For Treasury Management

O'Leary said he already used Circle’s (CRCL) USD Coin for “treasury management and cross-border settlement but many others won't move until their compliance teams know the rules.” 

CRCL stock, the largest stablecoin issuer in the U.S., fell 2% during overnight trading, amid broader weakness. On Stocktwits, retail sentiment around CRCL remained in the ‘bearish zone,’ while chatter around it stayed at ‘low’ levels over the past day.

The broader crypto market stayed under pressure. The total crypto market cap slipped 0.5% over the past 24 hours to about $2.54 trillion, while trading volume fell 22.7% to about $63.7 billion. 

Bitcoin's price, which O'Leary said was only one part of the sell-off, was down by 0.3% over the past 24 hours. On Stocktwits, the retail sentiment around BTC moved to 'bearish' from 'extremely bearish' zones, while chatter around it stayed at 'normal' levels over the past day.

Waiting On CLARITY

Last week, “Mr Wonderful” predicted that the CLARITY Act would pass by next year “out of economic necessity.” There has been some progress, as the GENIUS Act, which set up a federal framework for payment stablecoins, would have its rules take effect in January next year. The CLARITY Act, which would set rules for the wider crypto market, however, failed to advance in the Senate in September after falling short of the 60 votes needed.

Read more: Bitcoin Is Repeating Its 2023 Playbook, Says Analyst — But Glassnode Spots A $14B Liquidity Drain

For updates and corrections, email newsroom[at]stocktwits[dot]com.