'Shark Tank's Kevin O'Leary: Bitcoin must see Clarity Act passed to become an institutional asset

Kevin O'Leary, an investor on the hit U.S. investment reality show 'Shark Tank,' argued that the market-structure legislation known as the 'Clarity Act' must be passed for Bitcoin (BTC) to achieve genuine integration into the regulated financial system.

On the 24th (Korea time), O'Leary told CoinDesk in an interview that “until clear regulatory legislation is passed in the U.S., it will be difficult to expect any meaningful inflow of capital into Bitcoin,” adding that “we need the Clarity Act or infrastructure legislation.” The Clarity Act aims to clarify the criteria for distinguishing between securities and non-securities among crypto assets and to delineate regulatory jurisdiction between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

O'Leary added, however, that he also understands Coinbase's position in opposing the Clarity Act currently under discussion. He said, “Brian Armstrong, Coinbase's CEO, is also part of this issue,” while noting, “I sympathize with the argument that it is unfair that stablecoin holders are unable to earn returns like bank deposits.”

O'Leary stressed that “both Democrats and Republicans drafting the bill understand that this issue is hindering the development of the crypto market,” and that “this must be resolved for Bitcoin to be recognized as an asset accessible to institutional investors or sovereign wealth funds.” He added that “Bitcoin without institutional standing is still only in an 'adolescence stage as an asset class,'” and that “true growth potential opens only under clear standards from the SEC and regulators.”

The Clarity Act raised expectations in the market after passing the U.S. House of Representatives in July last year. However, passage has been delayed as disagreements have emerged during the Senate review process over the scope of regulation and the industry's impact.