Kevin O’Leary Says U.S. Rules Are Holding Back Stablecoin Adoption
Investor Kevin O’Leary says regulatory uncertainty is making businesses cautious about stablecoins and blockchain. A Cleveland Fed survey offers some context on stablecoin use, but neither the survey nor O’Leary’s remarks explains what caused a Bitcoin sell-off.
- O’Leary says companies want clearer rules before using stablecoins.
- He says his company uses Circle’s USDC for treasury management and cross-border settlement.
- A Cleveland Fed survey found that businesses cited customer demand and evidence of cost savings, as well as accounting and tax clarity.
- The available information does not link regulatory uncertainty to Bitcoin’s price decline.
O’Leary’s claim is about business adoption, not Bitcoin’s price
“It's not just about Bitcoin in the crypto sell-off. The adoption of stablecoins and blockchain within institutions has slowed down. Companies are waiting for clarity on regulations, ” O’Leary said in remarks attributed to him.
The same account quotes him saying his company uses Circle’s USDC for treasury management and international settlements. The remarks have not been independently verified, and the account does not say when or where he made them. It does not name his company or explain the scale or mechanics of its USDC use.
“We use USDC for treasury management and cross-border settlement. But many others won't do it till their compliance guys know the rules, ” O’Leary said.
USDC is a stablecoin, a cryptocurrency designed to maintain a relatively stable value. Treasury management means overseeing a company’s cash and liquidity. Cross-border settlement means completing payments between parties in different countries.
O’Leary’s view is plausible. Companies with compliance obligations may hesitate when rules are uncertain. But his statement is one person’s assessment, not independent evidence that institutional adoption has slowed across the market. Stablecoin use is also narrower than blockchain adoption generally, and neither is the same as Bitcoin price performance.
What businesses said about stablecoins
A 2026 Cleveland Fed Economic Commentary, “Will US Firms Adopt Stablecoins?”, offers a limited but useful counterpoint. It reports on a survey conducted from September 18 to 25, 2025, among 148 business contacts, primarily in the Fourth Federal Reserve District. The survey asked about stablecoin use and plans, not institutional blockchain adoption as a whole.
One respondent said their firm currently used stablecoins. Among respondents who were not current users, seven said they planned to adopt them. The rest reported no plans, unfamiliarity with stablecoins, or uncertainty. These results represent one survey group at one point in time. They are not a national adoption rate or evidence of a trend over time.
Of the 102 respondents who answered a question about factors affecting stablecoin use or interest, participants could select more than one answer. Fifty cited customer demand, 49 wanted more time to observe the market, and 42 wanted stronger evidence that stablecoins would be cheaper or more efficient than existing payment methods. Thirty-two cited the need for greater clarity around accounting or tax treatment.
The results suggest regulation is one concern, but not the only one. Clearer rules may help compliance teams assess risk, but they cannot create customer demand or prove that a stablecoin will reduce costs or improve operations. Businesses may also see little reason to replace familiar payment systems without a clear practical benefit.
What the GENIUS Act and CLARITY Act mean for businesses
O’Leary said, “We got the GENIUS Act going. We need the CLARITY Act for the rest.” The Cleveland Fed commentary says the GENIUS Act established a U.S. stablecoin regulatory framework in July 2025, so “going” is an imprecise description of its status after that point. The Act has been discussed as a step toward stablecoin regulation.
The CLARITY Act of 2025 is associated with H.R. 3633. Its text includes provisions on digital-commodity disclosures, when a blockchain system may be considered mature, and registration requirements for certain intermediaries. These topics help explain why supporters argue the bill could clarify compliance obligations. The information available here does not establish the bill’s current legislative status or show that it would resolve every uncertainty businesses face.
Rules alone may not make stablecoins the right tool for every company. The Cleveland Fed commentary notes that stablecoins issued under the GENIUS Act cannot directly pay deposit-like interest to holders and are not eligible for deposit insurance. Those differences can matter to businesses managing large balances. A regulatory framework can clarify requirements, but it does not automatically make stablecoins a better substitute for bank accounts or existing payment services. Some see the Act as a strategic inflection point for U.S. banks.
Regulatory uncertainty is not a diagnosis of the sell-off
O’Leary’s comments reflect his view of business adoption. The information provided includes no Bitcoin price, loss figure, date for the sell-off, or analysis linking regulatory uncertainty to the decline. It does not establish that unclear rules caused the market move.
The more defensible takeaway is that regulation may be one hurdle to stablecoin adoption, alongside customer demand, demonstrated business value, and companies’ willingness to change established processes. That is worth watching, but it does not fully explain Bitcoin’s price action or prove a market-wide slowdown in adoption.
Key questions and answers
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What does O’Leary say is holding back institutional adoption?
He says uncertainty about U.S. rules leaves companies and compliance teams reluctant to use stablecoins and blockchain.
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What does the Cleveland Fed survey say about stablecoin adoption?
Among 148 business contacts surveyed, one said their firm currently used stablecoins, and seven non-users planned to adopt them. Respondents also cited customer demand, time to assess the market, and evidence of cost or efficiency benefits, not just regulatory clarity.
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Did regulatory uncertainty cause the Bitcoin sell-off?
The available information does not establish that. O’Leary’s comments concern adoption, and no market data or causal analysis links them to Bitcoin’s price decline.
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What are the GENIUS Act and CLARITY Act?
The Cleveland Fed commentary says the GENIUS Act established a U.S. stablecoin framework in July 2025. The CLARITY Act, associated with H.R. 3633, is a bill addressing aspects of digital-asset market structure. Its current legislative status is not established here.
Related developments include USDC reaching $78.7 billion and Swiss AMINA Bank waiving USDC custody fees to target stablecoin growth.
