Kevin O’Leary, the venture capitalist, recently testified in front of the US Senate Banking Committee for FTX collapse. He proposed the view that crypto and the banking system should go hand-in-hand to prevent any mishaps. As per him, creating a distinction between crypto as well as the US banking system would be ridiculous.

Kevin O’Leary Recommends Unification of Crypto and Banking System

While elaborating on his stance, O’Leary mentioned that if the banking institutions are banned from integrating the technology and crypto assets it would not be a fine decision. In his words, this would short the stock of every bank operating in the United States. As a result of this, he added, the banking sector of America would be deprived of a huge amount of capital, paving the way toward its incompatibility to make pace with the rest of the world.

He is of the view that the collapse of the now-bankrupt crypto exchange FTX was a consequence of the war waged by Binance (the rival crypto exchange) which threw Sam Bankman-Fried’s platform out of its competition. During O’Leary’s testimony, he disclosed that the regulation was the chief thing during the silent battle between both the CEOs.

He added that with a twenty-percent stake in Bankman-Fried’s company, Changpeng Zhao and his Binance were in a strong position. In his words, however, they had to abide by the requests of the regulators as well as the compliance standards across diverse jurisdictions. As he put it, Bankman-Fried and his management only had one option to make FTX qualified for a license and that was to make a deal with Binance at a huge valuation of up to $32B.

According to him, Zhao decided to liquidate its FTT holdings to hurt the balance sheet of FTX. He asserted that the Binance CEO remained successful in pushing down the value of the token by doing this. He labelled Binance as a great unregulated worldwide monopoly at present.

Venture Capitalist Favors a Local Crypto Regulation

O’Leary additionally supported a crypto regulatory agenda and said that the promising industry is in a distressful situation. This, in his words, is because of incompetent or inexperienced managers, vulnerable business models, as well as unregulated operators. He emphasized the implementation of regulation to make pace with the other jurisdictions which have in advance employed beneficial policies.

On the other hand, if guilty, SBF could experience a jail time of 115 years sentence based on the charges. He was arrested a couple of days ago by the Bahamian authorities. The charges include wire and securities fraud, money laundering, and the violation of the laws related to campaign finance. Even though he has negated all allegations but yet he is expected to receive some punishment.