Kevin O'Leary is buying crypto again, says major stock exchange adoption is the 'watershed moment' to watch

Kevin O'Leary told The Block's Gareth Jenkinson at the Avalanche Summit in New York that he is buying new crypto positions for the next cycle and watching for a major stock exchange to adopt a blockchain.

"I'm back in the saddle buying new positions, putting my bets on for this next cycle," O'Leary said, adding that the next phase of crypto investing is figuring out which blockchain gets wide adoption and in which sector.

The O'Leary Ventures chairman said he can speak with CEOs across different industries about the blockchains they are considering, but “none of them are saying the same thing.” 

He said the first major exchange to adopt a blockchain would be a "watershed moment" for the industry because the broader financial ecosystem would want that chain to comply with the exchange's requirements.

O'Leary also addressed the recent setback for the Clarity Act, saying he expects crypto regulation to return to the agenda because lawmakers are putting tax policy in place for digital assets.

“If you're going to provide a tax policy on this asset, you want more regulation, not less,” he said, adding that he does not expect the Clarity Act to pass before the midterms.

On bitcoin, O'Leary said he sees potential for the largest cryptocurrency by market cap to account for 1% to 3% of alternative-asset allocations, comparing it with institutional gold holdings.

He also said his AI investments are focused on power infrastructure rather than models, including projects in Norway, Finland, Alberta, and Utah, as well as uranium.