The bitcoin price has plummeted around 70% from its all-time highs, dropping under $20,000 per bitcoin, and dragging on other top ten cryptocurrencies ethereum, BNB
Now, investor and Shark Tank star Kevin O’Leary has predicted a long-awaited piece of regulation could be poised to catapult bitcoin and crypto into the S&P 500—warning, “you either join the wave or get lost.”
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“Even though it has nothing to do with bitcoin, [the Stablecoin Transparency Act] will be the first regulation passed by U.S. regulators, and I would argue you want to be long bitcoin going into that outcome,” O’Leary, the chairman of O’Shares Investment Advisers, said during an appearance on the Crypto Banter Youtube channel. “You’re going to see a lot of interest in institutional capital coming into [stablecoins].”
O’Leary said he expects the Stablecoin Transparency Act, introduced in March this year and designed to bring greater transparency to the $150 billion stablecoin marketplace, could be passed by Congress after the U.S. midterm elections in November.
Stablecoins have rocketed over the last few years, facilitating the huge surge in the price of bitcoin, ethereum and other major cryptocurrencies such as BNB, XRP, solana, cardano and dogecoin as people use them as an on-ramp to the crypto market.
The Stablecoin Transparency Act—which would require issuers of cryptocurrencies such as tether and circle that are pegged to the U.S. dollar to report the “quality” of their assets held in reserve—is “very simple in nature which is why it may pass,” O’Leary said, adding: “End of the day, regulations come, bitcoin goes up.”
Earlier this year, O’Leary said he expects bitcoin, ethereum and crypto to become the the 12th sector of the S&P 500, joining technology, health care, financials, real estate, energy, materials, consumer discretionary, industrials, utilities, consumer staples and communications.
“I predict in the next 10 years that crypto, blockchain, bitcoin—all of this innovation—will be the 12th sector of the S&P,” O’Leary said in April at the Bitcoin 2022 conference. “When we get policy and the regulator regulates … the spigots of capital are going to flood into this sector like you’ve never seen.”
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The stablecoin market was rocked this year by the collapse of the experimental terraUSD algorithmic stablecoin and its support coin luna, triggering a burst of regulatory scrutiny.
“After the May problems of the terraUSD stablecoin, confidence in such cryptocurrencies seemed to have fallen significantly,” Grzegorz Dróżdż, a market analyst at the investment company Conotoxia, wrote in emailed comments.
“This is noticeable in market valuations of other stablecoins, including tether