Tuesday, 02 January 2024 12:17 GMT

Kevin O'leary Predicts CLARITY Act Will Pass In 2027, Says Tokenization Makes Crypto Regulation An 'Economic Necessity'


Date:

(MENAFN- AsiaNet News)
  • According to Kevin O'Leary, tokenization helped streamline the financial services system.
  • He explained that the money transfer system used today was as old as the 60s and needed change.
  • His prediction came as the CLARITY Act remained stalled in the Senate.

Investor Kevin O'Leary, popularly known as "Mr. Wonderful," predicted that the Digital Market Asset Clarity Act (CLARITY Act), the stalled bill that would set federal rules for U.S. crypto markets, will pass in 2027 "out of economic necessity."

O'Leary listed the passage of the CLARITY ACT among three predictions for next year. "I'm going out on a limb here," he said on Thursday. He tied his view to tokenization, saying that "Tokenization is a good idea to streamline the financial services system. It's much better than what we have now," he said.

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Source: @kevinolearytv/x

O'Leary explained that much of the system for moving money was decades old. "Some of the ways we transfer money came from the 60s, and they haven't been upgraded yet," he said. "When we go to blockchain, that will solve a lot of problems."

Pressure To End Conflicts

The Clarity Act was one of three predictions O'Leary made, all built on the idea that economic pressure would force a resolution. He said the U.S. trade war with Canada would end because both economies faced a common rival. "The big adversary to the North American economy is China," he said. "So trade wars and tariffs will be gone."

He also predicted that the conflict in the Middle East would wind down, because major oil importers could not absorb prolonged high prices. "India, China, Japan, and countless other countries cannot live with oil over $100," he said, adding that he expects the Strait of Hormuz to reopen by the end of 2027.

U.S. crude traded near $91 a barrel on Friday, up 0.3% on the day. Brent stood just above $98. Crude fell nearly 12% over the week as investors weighed the risk of renewed U.S.-Iran tensions against hopes for a diplomatic deal.

Bitcoin's price was up by 0.2% during the past 24 hours. On Stocktwits, retail sentiment around Bitcoin was in the 'bearish' zone, while chatter around it was at 'normal' levels over the past day.

Bill Stalled In Senate

His prediction comes as the bill's path has grown more complicated over this year. It hit a wall in the Senate in September, when a procedural vote to take it up failed 49-50, short of the 60 votes needed.

The political picture also changed this week, as Democrats won control of both the House and the Senate in the midterms. That changes who will lead talks on the bill when the next Congress takes office in January.

The timing matters because each Congress lasts two years. Any bill that doesn't pass both chambers before the session ends dies and must be reintroduced. That means the Clarity Act would have to start over in the new Congress if it doesn't clear the Senate before then.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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AsiaNet News

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