Kevin O'Leary Says Sacrificing Tornado Cash Is Worth It For Institutional Adoption

Mr. Wonderful thinks crypto needs more regulation and fewer "crypto cowboys" like Tornado Cash creator Alexey Pertsev, who he says was a necessary sacrifice to create stability in institutional flows. p> New

Clamping down on crypto apps that “disrupt primary forces of regulation” is necessary, says Shark Tank host and millionaire venture capitalist Kevin O’Leary, who has argued that Tornado Cash and similar services prevent real institutional capital to enter the space.

In a discussion on Crypto Banter on Saturday, O'Leary, also known as Mr. Wonderful, suggested that apps like Tornado Cash, an Ethereum-based crypto mixer, are part of a culture of " cowboy crypto" which should have no place in the industry.

Instead, O'Leary opines that crypto needs a "rules-based environment" in order to attract real institutional capital into the digital asset industry, and much of it of this regulation must eradicate protocols such as Tornado Cash, which allows users to transact anonymously and therefore potentially engage in criminal activity.

During the discussion, O'Leary did not back down on his opinion regarding the arrest of Tornado Cash creator Alexey Pertsev, stating:

"At the end of the day, there's no problem stopping this guy. Why? He's playing with the overriding forces of regulation [...] If we have to sacrifice him, that's okay , because we want to have some stability in that institutional capital.”

The venture capitalist said that if institutional interest in the digital asset industry continues to grow, “they won’t touch it as long as the crypto cowboys straddle the fence.” O'Leary pointed out that "until we get rid of this crap" there will be no "stability in [...] institutional capital", but he thinks the industry is slowly eliminating but surely the "cowboys":

"I think we're getting to that point now. Maybe we're in the third or fourth innings towards this, but I'm tired of this crypto cowboy shit. I want to get involved in a regulated place where we can bring billions of dollars to work. I don't have to be a crypto cowboy, and I don't want to be one because I work in the regulated world."

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