"Developing cryptocurrency exchange M2 from the UAE seeks to steal Binance's lunch, says Shark Tank star - Headline""

Kevin O'Leary: government shutdown

On September 29, Kevin O'Leary, chairman of O'Leary Ventures and investor on the show "Dancing with the Devil," provided a detailed analysis of the government shutdown, cryptocurrency regulation, and the commercial real estate crisis on Fox Business's Varney & Co. (hosted by Stuart Varney).

Kevin O'Leary expressed confidence that, from an investor's perspective, he is not particularly worried about a government shutdown. He believes that the market is largely indifferent to such events, as they usually get resolved within a short period, typically around 10 days. O'Leary explained that a government shutdown is not a debt default, but rather a result of politicians' inability to cooperate. He emphasized that when such shutdowns start to affect voters' daily lives, politicians usually find a way to resolve the issues. He also noted that a government shutdown causes more damage to politicians' brands than to the market, as it reveals their inability to govern effectively.

Government shutdown in the USA

As CryptoGlobe reported earlier, on September 30, the U.S. Senate narrowly avoided a government shutdown by approving a temporary financial bill just three hours before federal agencies were set to close. According to CNBC, President Joe Biden immediately enacted the legislation, ensuring that federal organizations would continue to operate for an additional 45 days. The temporary financial solution, officially called HR 5860, provides extra time for both legislative chambers to finalize their budget programs. The bill, which consists of 71 pages and was organized by House Speaker Kevin McCarthy, allocates funds for emergency aid but does not offer new financial support for Ukraine's ongoing struggle against Russia.

Regulation of digital currencies in the USA

Kevin O'Leary expressed serious concern about the state of digital currency regulation in the U.S. He attended a recent hearing on digital currencies and was struck by the level of criticism directed at SEC Chairman Gary Gensler. O'Leary described the atmosphere as if Gensler had been "fried like a chicken," highlighting the intensity of the scrutiny. He expressed frustration with Gensler's approach to regulation, claiming that it is causing the U.S.

New digital currency exchange M2

O'Leary revealed an upcoming event in Abu Dhabi that could potentially shift the center of cryptocurrency innovation away from the U.S. According to him, Abu Dhabi plans to launch a new digital currency exchange called M2. This exchange aims to be fully compliant and backed by billions of dollars, offering transparency and stability of ownership. O'Leary emphasized that M2 is intended to replace both FTX and Binance, as the two major exchanges have faced regulatory hurdles in the U.S. He claims that M2 could set a new standard in digital currency trading, especially since owning cryptocurrencies like Bitcoin requires an exchange to ensure liquidity.

Regional banks and the commercial real estate crisis

O'Leary warned about the growing crisis in the commercial real estate sector, particularly concerning regional banks. He explained that many buildings are financed with borrowed funds at lower interest rates, and now they are facing refinancing at much higher rates, making them uneconomical. O'Leary pointed out that this situation could put significant pressure on the loan portfolios of regional banks, which in turn could affect small businesses. He also mentioned that the loans for these buildings were taken out at rates between 3% and 5%, and now refinancing is being done at rates between 9% and 14%, making these buildings uneconomical.

Senator Hagerty's plan

To mitigate the consequences of regional bank failures, O'Leary supported a plan proposed by Senator Hagerty. The plan aims to guarantee payroll accounts in these banks for amounts up to $100 million for 24 months. O'Leary argues that this should be a non-political issue, as it is aimed at protecting jobs in America. He emphasized that this is not a bailout package, but a necessary measure to ensure financial stability and protect employment.

Influence on politics

O'Leary mentioned that he visits Washington every month to better understand the political landscape. He believes that being physically present in the halls of power is the best way to influence politics, especially for small businesses. O'Leary emphasized that simply writing letters or sending tweets is not enough; it is necessary to meet with politicians and their staff to make a real impact.