Last week, Joe Biden issued a crypto-related executive order. It was allegedly designed to ensure agencies in the U.S. could study the effects and risks associated with digital currencies and begin implementing needed regulation. The order also potentially opened the door to a national digital currency for the U.S. For the most part, traders and analysts seemed to like the fact that the order was giving crypto regulation its start, but for men like Kevin O’Leary of “Shark Tank” fame, the order is taking the world of digital currencies in the wrong direction.
Kevin O’Leary On Biden’s Order: It’s the Wrong Move
As the chairman of O’Shares ETFs, O’Leary was quick to take issue with the climate initiatives discussed in the order. He was so taken aback by the verbiage that he ultimately sold all his shares in associated crypto mining companies, as he’s certain these firms will become quick targets of the Biden administration. In an interview, he stated:
It wasn’t an all-out ban, so that’s good news, but there is a huge landmine in that order for bitcoin miners.
There are climate discussions outlined in the executive order, and he believes these discussions are aimed primarily at companies that mine bitcoin and digital currencies. He stated:
What this bill is basically saying is that we’re going to start considering climate in cryptocurrencies. Now, that’s really bad news because all of these bitcoin miners use carbon credits to offset their so-called use of carbon.
He says that there is no known way in which these companies can be audited, which puts them at a humongous disadvantage. He said:
What’s going to happen pretty quickly is it’s going to be obvious to people that these companies can’t cut it. There’s no way they can prove they’re not using carbon. Bad news.
Believing that all crypto mining firms will be forced to shift to hydropower to remain in business, he quickly sold any stocks and investments he had in these companies. He commented:
The world is changing quickly on this ESG thing and it’s here to stay.
It is interesting to see such action and commentary coming from O’Leary given his past environmental concerns when it comes to crypto mining. Last year, O’Leary stated that he was no longer in the market for bitcoin mined in China, as the nation was not known for employing green extraction methods.
Mining Seems to Split People Down the Middle
The topic of bitcoin mining has long been a controversial topic. Several environmentalists around the world have expressed great concerns about the mining sector, as they are convinced the industry uses heavy amounts of energy and thus puts the planet in irreversible danger.
O’Leary was quick to comment that while has sold all his mining stocks, roughly 20 percent of his portfolio remains allocated to various cryptocurrencies and crypto-related technology.