Kevin O’Leary, star of the television show “Shark Tank,” has suggested that the crypto market should expect more exchanges to undergo a meltdown in the future.
According to the venture capitalist, the collapses will emerge, especially with the lack of regulations that can minimize the influence of rogue players, O’Leary said during an interview with Kitco News on January 17.
“I’m not worried, but if you’re asking me, will there be another meltdown to zero absolutely 100% it’ll happen, and it’ll keep happening over and over. <…> I think regulation doesn’t have to be. It’s not going to change fraud, it’s just going to make it much easier for people to understand what the rules are,” he said.
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Possible U.S. crypto regulations
According to O’Leary, lawmakers are likely to enact a solid regulatory framework soon while stressing that holding hearings in the wake of crypto collapses does not benefit the industry. In this line, he suggested that lawmakers are tired of holding hearings.
“A good thing these hearings in the Senate have really poked the bear, as I like to say, and I’ve participated in the last hearings. When I had a chance to talk to the lawmakers, I sensed that they were frustrated now. They’re tired of putting these hearings on every six months every time one of these crypto companies blows up and goes to zero. They’re so unregulated,” he added.
It is worth mentioning that O’Leary recently became the center of controversy following his connection with the FTX crypto exchange, which ultimately collapsed. The TV personality, who served as the exchange’s spokesperson, alleged that the crash was not due to fraud allegations against founder Sam Bankman-Fried but the doing of Binance CEO Changpeng Zhao.
He made the allegations while appearing before a U.S. senate session investigating the collapse.
FTX collapse and regulations
Notably, O’Leary has accelerated his push for crypto regulations after the FTX collapse. Indeed, he alleged that if the sector was regulated, the FTX incident would not have occurred. Furthermore, as reported by Finbold, Bankman-Fried, in his analysis of the collapse, also laid the blame on Zhao.
In the meantime, the media personality remains bullish about crypto, maintaining that assets like Bitcoin (BTC) are here to stay while noting that a price correction offers an opportunity to invest more in the asset.
His sentiments come as Bitcoin continues with its new year rally that has seen the maiden crypto retest $21,000.
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