Renowned venture capitalist and television personality, Kevin O’Leary, known for his appearances on the hit show “Shark Tank,” recently made a bold statement regarding the relationship between crypto exchanges and regulators.
O’Leary, who has a wealth of experience in venture capital and investments, strongly believes that legal action should not be the go-to approach for crypto exchanges when dealing with regulatory challenges.
“Litigating your regulator, in my opinion, is a really stupid idea,” he cautioned during an interview with CoinDesk TV’s “First Mover” on Tuesday.
O’Leary, who invests in crypto exchange WonderFi, shared that Coinbase, a popular crypto exchange, may face legal action from the SEC for possibly breaking securities laws with its exchange and staking services.
He advised Coinbase to resolve the issue by cooperating with regulators rather than fighting them in court.
O’Leary also mentioned that if U.S. regulators do not approve of certain practices like staking or lending, it’s best to accept their decision.
Last month, the SEC sent Coinbase a Wells Notice, which is a warning of potential legal action.
Additionally, O’Leary mentioned that WonderFi plans to merge with two other Canadian exchanges, Coinsquare and CoinSmart.
Overall, O’Leary’s suggestion for Coinbase is to work with regulators to find a solution.
