A recent sharp drop in the cryptocurrency market is difficult to explain by Bitcoin's moves alone, and U.S. regulatory uncertainty is blocking institutional demand, a report said.
On Nov. 12, blockchain outlet U.Today reported that billionaire investor Kevin O'Leary (케빈 오리어리) pointed to delays in establishing clear rules in the United States as a current market problem.
He said the latest crypto selling pressure is not only about Bitcoin. Institutional adoption of stablecoins and blockchain has visibly slowed, and companies are postponing spending until regulatory standards become clear, he said. That means regulated demand capable of supporting inflows has not recovered while the market is volatile.
O'Leary said his company already uses Circle's USDC for treasury management and cross-border payments, but other companies are hesitant to adopt it because of regulatory uncertainty and legal risks.
He also mentioned U.S. congressional legislative discussions. O'Leary cited the GENIUS Act and the CLARITY Act and argued that institutional money can flow in in earnest only when an institutional framework is established for both stablecoins and the broader crypto market. He particularly stressed the need to legislate the CLARITY Act.
O'Leary has previously cited regulatory uncertainty as the reason institutional money has not sufficiently flowed into Bitcoin. On Oct. 28, he pointed to regulatory uncertainty and the threat of quantum computing as two issues affecting Bitcoin.
If O'Leary's diagnosis is correct, the key to a recovery in institutional demand lies in resolving regulatory uncertainty rather than a short-term price rebound. A main point to watch is whether related legislation will ease concerns in corporate compliance departments and lead to actual spending.
“The crypto sell off isn’t just about Bitcoin. Adoption of stablecoins and blockchain across institutions has stalled because companies are still waiting for regulatory clarity. We use USDC for treasury management and cross border settlement, but many others won’t move until their compliance teams know the rules. The GENIUS Act was a start. We need the CLARITY Act to unlock the rest.”
