Investor and Shark Tank personality Kevin O'Leary has weighed in on the current cryptocurrency downturn, arguing that the industry's troubles go well beyond the falling price of Bitcoin.

Mr. Wonderful, as O'Leary is more widely known, points to a lack of regulatory clarity in the United States as one of the industry's most serious obstacles. In his view, that uncertainty keeps large financial firms from embracing blockchain and stablecoin technology.

O'Leary says institutional adoption of crypto has nearly stalled. In his telling, companies are reluctant to commit any capital until the rules are clearer.

"It's not just about Bitcoin in the crypto sell-off. The adoption of stablecoins and blockchain within institutions has slowed down. Companies are waiting for clarity on regulations," O'Leary wrote.

The billionaire investor said his own company already uses Circle's $USDC for treasury management and international settlements. Many other firms, however, are hesitant to do the same because their compliance teams are unsure of the regulatory environment.

"We use $USDC for treasury management and cross-border settlement. But many others won't do it till their compliance guys know the rules," O'Leary added.

The well-known investor focused on two major U.S. cryptocurrency bills: the $GENIUS Act and the CLARITY Act.

"We got the $GENIUS Act going. We need the CLARITY Act for the rest," Kevin O'Leary concluded.

Kevin O'Leary's earlier warnings about Bitcoin

O'Leary has long voiced concerns about the crypto sector and about why Bitcoin has not yet attracted more institutional investment.

For example, on Oct. 28, the billionaire investor identified two main issues weighing on Bitcoin: regulatory uncertainty and the growing threat posed by quantum computing.