- Kevin O’Leary predicted that under Trump, cryptocurrency will transition from its unregulated phase to a structured industry, with the bipartisan Genius Act enabling cheaper digital payments and potentially establishing crypto as a twelfth economic sector.
- He recommended investors start with crypto exchanges like Coinbase (COIN) and Robinhood (HOOD), which he owns stakes in, expecting clarity on token classifications like Ethereum (ETH) to drive market growth.
- O’Leary addressed IRS inefficiencies highlighted by a Treasury adviser, suggesting that upgrading its outdated software, as part of broader government modernization, could improve taxpayer experiences.
On a recent Fox Business segment, O’Leary Ventures Chairman Kevin O’Leary shared his outlook on cryptocurrency under the Trump administration, asserting that the industry is moving beyond its unregulated “cowboy era” into a phase of structured growth. He pointed to a shift from litigation to policy-making, emphasizing the bipartisan Genius Act – formerly the Stablecoin Act – spearheaded by Senators Gillibrand and Hagerty, which he expects Trump to sign within months. This legislation, focused on digital payment systems rather than Bitcoin (BTC), could enable platforms like Robinhood (HOOD), WonderFi, and Coinbase (COIN) to offer cheaper money transfers, disrupting traditional banking and boosting productivity across all 11 economic sectors, potentially establishing crypto as a twelfth sector within years.
O’Leary expressed optimism about forthcoming market infrastructure laws to classify tokens like Ethereum (ETH) as either commodities or securities, providing long-awaited clarity for investors and technologists. He suggested that rather than diving straight into Bitcoin, skeptical investors might first consider “picks and shovels” opportunities – exchanges like Coinbase, Robinhood, and WonderFi, where he holds positions – anticipating increased activity once regulations solidify. He views these developments as critical for integrating crypto into mainstream finance, driven by Trump’s pro-crypto stance and a push for bipartisan support, marking a significant evolution from the industry’s chaotic past.
The conversation shifted when the moderator introduced comments from a Treasury Department adviser, who highlighted inefficiencies at the IRS, including a disconnect between leadership and staff, and wasteful contracts worth tens of millions with no clear purpose. O’Leary, responding to the moderator’s note about the IRS being thirty years behind technologically and $50 million over budget, refrained from harsh criticism but acknowledged the agency’s outdated systems as part of a broader governmental issue. He suggested that upgrading the IRS’s decades-old software could enhance efficiency, a sentiment he tied to the Trump administration’s Department of Government Efficiency (DOGE) efforts, noting that such modernization would benefit taxpayers like himself, currently navigating tax season, and align with broader calls for federal agency improvements.
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