Shark Tank star Kevin O’Leary has shared his outlook for the crypto industry following several enforcement actions by the U.S. Securities and Exchange Commission (SEC). Mr. Wonderful tweeted Monday:
“Venture funding for new crypto projects is virtually dead and aftermarket trading for existing projects is at massive discounts. Reason? The regulator is now regulating by enforcement, penalties, and massive fines.”
“The venture community has moved on to the next ‘big’ thing, AI,” he added.
O’Leary explained in an interview with Trader TV Live, published Sunday, that following the collapse of cryptocurrency exchange FTX, U.S. lawmakers are “pissed” about having to regularly meet to deal with the failures of crypto companies. Senators are “fatigued” and “really tired of gathering every six months when the next crypto company blows up and goes to zero,” the Shark Tank star described. He believes this is one of the reasons SEC Chairman Gary Gensler recently came down “heavy-handed” on crypto exchange Kraken over its staking program.
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‘Enforcement 40’ for 2020
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