Scott Mlin | NBC Finance Channel
Celebrity investor Kevin O’Leary is investing in digital currencies, but he is not so rash. He told CNBC that he would prefer to consult regulators in this field rather than become a “crypto cowboy.”
O’Leary stated on CNBC’s “Capital Connection” program on Tuesday that he prefers to consult regulators before investing in cryptocurrencies to understand their position in the field “what is possible and what is impossible.”
“I have no interest in investing in litigation against the SEC [U.S. Securities and Exchange Commission], This is a very bad idea,” he said during a discussion with the financial technology company Ripple on the US regulator’s case.
The US Securities and Exchange Commission’s case against Ripple focused on its concerns about the relationship between this fintech company and the world’s seventh largest cryptocurrency, XRP.this SEC accuses Ripple and its executives $1.3 billion worth of tokens were sold in an unregistered securities offering.
O’Leary is an investor in the “Shark Tank” and chairman of the O’Shares ETF. He said that he is more willing to adapt to and comply with regulatory agencies, “because this is where the real capital is.”
“I have no interest in being a crypto cowboy and making anyone dissatisfied with me, because…I have so many assets in the real world, I have invested, and I have to comply,” he added.
In terms of investing in digital cash linked to the national currency (also known as “stable currency”), O’Leary stated that he has no interest in holding digital Russian rubles or RMB because he understands the country’s blockchain or how they know it Not enough to understand the ownership of the funds being monitored.
On the contrary, O’Leary believes that the greatest opportunity for stablecoins is still currencies linked to the US dollar.
However, O’Leary explained that after selling a large amount of commercial real estate investment in the past few years, he has been sitting on “a lot of cash”, which will lose purchasing power due to inflation.
In contrast, O’Leary stated that he can get a potential return of 6% by buying USD Coin, which is the world’s second largest stablecoin operated by the digital currency company Circle and is pegged to the U.S. dollar. Although O’Leary clarified that he can currently only invest up to 5% of his cash in USDC.
But he added that the United States has the opportunity to “take the lead” with stablecoins.
O’Leary stated that he participated in the city’s annual financial technology festival in Abu Dhabi, the capital of the United Arab Emirates, and talked with the government and regulators to learn more about the country’s position on financial blockchain rules.
He said that he did not consider cryptocurrencies like Bitcoin the way others did.
O’Leary stated that he sees it as “software development”, so when he intends to invest in the field, he wants to know which blockchain platform will “win in the long run.”
He uses Solana, Polygon, and HBAR as examples.
“I need to invest in all of these, not just one of them, because I don’t know who will be the winner,” he explained, adding that he is looking for which markets provide the best engineering talent and policies in the process.
O’Leary stated that there are currently no exchange-traded funds holding bitcoin in the United States because regulators are “spending time” on blockchain supervision.
“That’s why I came here. I want to hear what the regulator’s plan is, so that I can participate in it, because I’m going to every jurisdiction that has forward-thinking about decentralized finance,” he Say.