Wall Street tokenization push stalls without U.S. crypto rules, Kevin O’Leary says

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Wall Street tokenization stalls

Highlights

Kevin O’Leary states at Consensus Miami 2026 that Wall Street adoption of tokenization remains minimal until clear U.S. digital asset regulations emerge.
O’Leary highlights stablecoin adoption accelerating when compliant frameworks exist, contrasting with slow institutional uptake for most crypto assets amid regulatory ambiguity.
He asserts that infrastructure underpinning blockchain and artificial intelligence may present greater long-term value than digital tokens, given growing enterprise focus.

Regulatory uncertainty weighs on adoption

As first reported by CoinDesk, O’Leary says at Consensus Miami 2026 that tokenization remains largely theoretical for major institutions until Congress and regulators establish clear rules for digital assets. He argues that institutional indexers will not adopt tokenized products, and that bitcoin also remains outside the mainstream for many large investors because compliance requirements are still unresolved.

He says the decisive shift comes only when the U.S. creates a formal legal framework for the sector and aligns it with Securities and Exchange Commission oversight. In his view, passage of legislation would give firms the certainty needed to commit capital at scale and could materially change how Wall Street approaches blockchain-based finance.

The debate comes as financial firms continue testing tokenization, which converts assets such as stocks, bonds and funds into digital tokens that can trade around the clock and settle more quickly. Supporters say the technology could lower costs and modernize market infrastructure, but O’Leary argues legal clarity remains the prerequisite for meaningful institutional uptake.

Stablecoins, blockchain infrastructure and market concentration

O’Leary points to stablecoins as evidence that regulation can speed adoption, saying usage expands rapidly once policymakers provide a compliant structure. He says cross-border payments can move in minutes at a fraction of traditional costs when compliance and transparency standards are in place.

He also says institutional interest inside crypto has narrowed sharply, with bitcoin and ether accounting for nearly all of the market’s value while many smaller tokens lose relevance. That split, he argues, increasingly separates speculative crypto assets from enterprise blockchain tools that can support logistics, contract management and inventory systems.

For long-term investors, O’Leary says the bigger opportunity may lie in the infrastructure supporting blockchain and artificial intelligence rather than in digital assets alone. He argues that the platforms winning corporate standardization, along with the energy and data center capacity behind them, could prove more valuable than the tokens themselves.

Our earlier article on the U.S. stablecoin legislation compromise explained how Coinbase says an updated Senate deal could clear a path for the Clarity Act while addressing banks’ concerns. We noted that the proposal would restrict balance-based “idle yield” rewards but keep activity-based incentives allowed, a distinction Coinbase argues is essential for compliant stablecoin growth and broader market participation.

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