Kevin O’Leary has returned to buying new cryptocurrency positions for the next market cycle while watching for a major stock exchange to adopt blockchain infrastructure, a development he expects could influence which network gains institutional traction.
Summary
- Kevin O’Leary is buying new crypto positions as he prepares for the next market cycle and looks for networks gaining institutional adoption.
- O’Leary said the first major stock exchange to adopt a blockchain could become a watershed moment for the crypto industry.
- O’Leary does not expect the CLARITY Act to pass before the midterms but believes digital asset tax policy will keep regulation on the agenda.
- O’Leary sees Bitcoin potentially accounting for 1% to 3% of institutional alternative asset allocations.
According to comments made to The Block at the Avalanche Summit in New York, the O’Leary Ventures chairman said he is placing new bets as he tries to identify which blockchain could gain widespread use and where that adoption will emerge.
“I’m back in the saddle buying new positions, putting my bets on for this next cycle,” O’Leary said.
His investment approach is focused less on picking individual crypto assets in isolation and more on determining which underlying network could become a standard for a major industry. Conversations with executives have yet to produce a clear answer, he said, because companies across different sectors are considering different blockchains.
O’Leary said he can speak directly with chief executives about the networks their companies are evaluating, but “none of them are saying the same thing.”
O’Leary sees exchange adoption as a watershed moment
A major stock exchange could provide one of the clearest signals, according to O’Leary, who described the first exchange to adopt a blockchain as a potential “watershed moment” for the crypto industry.
Once an exchange settles on a network, companies and financial institutions that interact with the venue could have an incentive to work with infrastructure that meets the same technical and compliance requirements. O’Leary presented that scenario as one possible route through which a particular blockchain could gain wider use.
Traditional exchanges are already moving parts of their infrastructure onchain. The New York Stock Exchange has been developing onchain settlement infrastructure for tokenized securities, with NYSE President Lynn Martin saying in August that work was continuing on a dedicated digital trading platform.
Intercontinental Exchange, NYSE’s parent company, later agreed to invest in tZERO and license its blockchain patents as the companies work on tokenized securities infrastructure. The planned platform is designed to support round the clock trading and immediate blockchain settlement, though regulatory approvals are still required.
Nasdaq has taken a separate route. Earlier in September, Nasdaq Ventures agreed to invest $100 million in Kraken parent Payward at a $21 billion valuation as the companies expanded their work on tokenized equities and settlement. Nasdaq and Payward expect Nasdaq Equity Tokens to launch in the second quarter of 2027.
Regulators have been preparing for more securities activity to move onchain as well. The Securities and Exchange Commission recently granted tokenized securities venues five years of conditional relief to trade eligible tokenized U.S. stocks through permissioned automated market makers and liquidity pools. Eligible tokens must provide holders with the same rights and privileges as conventional shares under the five year exemption.
Crypto regulation remains on O’Leary’s agenda
O’Leary expects U.S. lawmakers to return to crypto market structure legislation despite the latest setback for the CLARITY Act.
The Senate failed to advance the bill this week after a cloture motion fell short of the 60 votes needed to begin formal debate. Crypto.news previously reported that the procedural vote failed after receiving 50 votes to 49.
O’Leary said he does not expect the legislation to pass before the midterm elections, but argued that work on digital asset taxation makes continued regulatory action likely.
“If you’re going to provide a tax policy on this asset, you want more regulation, not less,” he said.
His comments came as Congress made progress on a separate digital asset tax package. The House Ways and Means Committee advanced the Digital Asset Tax Certainty Act in a 38 to 5 vote on Sept. 16, moving the proposal toward possible consideration by the full House.
The crypto tax legislation includes an exception for qualifying blockchain network and transaction fees of up to $10, alongside proposed rules covering wash sales, stablecoins, crypto lending, mining, staking and broker reporting.
Seven Senate Democrats who opposed the CLARITY Act cloture motion have since indicated that negotiations are not over. Their effort leaves open the possibility of further talks, though the failed procedural vote has kept the bill from entering formal Senate debate.
O’Leary’s current position differs from the timeline he gave earlier in 2026. In January, he expressed hope that U.S. crypto market structure legislation could clear Congress before the midterms. By June, he was arguing that legislation could become an important catalyst for institutional participation, particularly among pension funds and sovereign wealth funds.
Bitcoin allocation could reach 1% to 3%
For Bitcoin, O’Leary framed potential institutional exposure against allocations already made to another alternative asset, gold.
He said Bitcoin could eventually account for between 1% and 3% of alternative asset allocations, using institutional gold holdings as a comparison. His upper range is consistent with comments he made earlier this year when discussing how much Bitcoin large investors may be willing to hold.
In February, O’Leary said some institutions were reluctant to move beyond roughly 3% Bitcoin exposure because of concerns surrounding quantum computing and the network’s long term security. Developers have been discussing proposals intended to reduce Bitcoin’s exposure to future quantum attacks, while the risk has become part of the institutional debate around allocation limits.
O’Leary remains focused on investments outside digital assets as well, particularly the infrastructure needed to support artificial intelligence.
Instead of concentrating his AI investments on individual models, he said he is investing in the power infrastructure required to run them. Projects cited by O’Leary include investments in Norway, Finland, Alberta and Utah, along with exposure to uranium as demand for electricity from data centers grows.
