Veteran investor Kevin O'Leary wants you to know the crypto sell-off isn't just a Bitcoin story. On Wednesday, the "Shark Tank" star took to X to share a clip from his interview with FINTECH TV, arguing that the downturn reflects something bigger: institutions are sitting on their hands, waiting for regulators to tell them what's allowed.

Adoption Has Stalled, Argues O'Leary

"Adoption of stablecoins and blockchain across institutions has stalled because companies are still waiting for regulatory clarity," O'Leary said.

He's not just talking theoretically. O'Leary said his holding companies use USDC (CRYPTO: USDC) for treasury management and cross-border settlements. But plenty of other companies remain on the sidelines, with their compliance teams essentially tapping their feet until the rulebook gets clearer.

He described the GENIUS Act as "a start" but said lawmakers must advance the CLARITY Act to unlock wider institutional participation in cryptocurrency markets. In other words: nice first step, now finish the job.

Will O'Leary's Prophecy Come True?

The regulatory theme also showed up in O'Leary's 2027 predictions. Last week, he projected that the CLARITY Act would finally pass in 2027, emphasizing the importance of tokenization and modernizing financial infrastructure.

Not everyone is as optimistic. Kalshi bettors are pricing in just a 25% chance that the key cryptocurrency legislation becomes law in 2027.

There's good reason for the skepticism. The bill failed a key Senate vote in September, falling short of the 60 votes needed to advance, as key Democratic negotiators who spent months on the bill voted no. And Democrats' midterm victory and takeover of Congress could make it harder for the CLARITY Act to advance in the near term.

So O'Leary is betting on a 2027 timeline while the prediction markets shrug. For now, the man who built a career on telling founders whether their ideas are worth funding is essentially making the case that Washington needs to approve the next round.

Price Action: As of this writing, BTC is down 0.30% in the last 24 hours to $73,482.51, according to market data.