Key Takeaways:
- Kevin O’Leary says regulated stablecoins could disrupt the multi-trillion dollar FX market by making transactions faster and cheaper.
- The U.S. Genius Act aims to regulate stablecoins, potentially influencing global financial frameworks and triggering widespread adoption.
- Financial institutions are lobbying against stablecoin legislation due to the threat it poses to their high-fee international transfer models.
At the Consensus 2025 conference in Toronto, investor Kevin O’Leary warned that stablecoins pose a serious threat to traditional foreign exchange (FX) and payment systems.
He argued that regulated stablecoins offer faster and cheaper cross-border transactions, directly challenging legacy financial institutions that depend on high fees.
BILLIONAIRE KEVIN O’LEARY JUST SAID ALL THE CRYPTO LIQUIDITY WILL SOON FLOW INTO #BITCOIN
— Vivek⚡️ (@Vivek4real_) May 16, 2025
THERE IS NO SECOND BEST!!! pic.twitter.com/L71yQoDTGT
O’Leary described the FX market as “old, ugly, and inefficient,” asserting that a properly regulated stablecoin could revolutionize it by making it more transparent and cost-effective.
He highlighted the U.S. “Genius Act,” a proposed stablecoin regulatory framework, as a potential tipping point that could lead to global regulatory alignment.
If passed, O’Leary believes regulators in Abu Dhabi, Switzerland, and the U.K. would likely follow suit.
However, he emphasized that the financial services industry is strongly opposing the bill, as it threatens their revenue streams.
Senator Kirsten Gillibrand also supported the bill, noting that it would improve consumer protection, bankruptcy rules, and ethical standards.
The legislation is backed by groups like Coinbase’s Stand with Crypto.
As of mid-May, stablecoins have a combined market cap of nearly $250 billion, led by Tether’s USDT and Circle’s USDC.
O’Leary stressed that clear regulations could unlock trillions in institutional investment and reshape the global financial system.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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