Popular American investor and "Shark Tank" celebrity Kevin O'Leary has named stablecoins as the safest area in crypto. He explained that stablecoins are far less risky compared to Bitcoin (BTC) and other cryptocurrencies because of clearer regulations and guarantees provided by the U.S. Treasury.
Three groups of crypto
"Mr. Wonderful" recently shared a post on X to categorize crypto assets according to volatility, regulations, and adoption prospects. He put the crypto industry into three groups.
"Everybody knows crypto is volatile, but crypto is different things," O'Leary noted.
The Canadian billionaire suggested that the least volatile crypto assets are stablecoins at the moment.
"You would call stablecoins the safest right now," he noted while referring to the GENIUS Act that created federal regulations for payment stablecoins in the United States.
"It's really digital money," O'Leary stated.
The GENIUS Act, which was enacted in July 2025, makes it mandatory for stablecoin issuers covered by the act to hold reserves consisting of eligible liquid assets.
While stablecoins are supposed to have a relatively stable price, they are not completely risk-free. Besides, the safety of stablecoins also depends on reserve quality, the issuer, and redemption terms.
Bitcoin is a speculative asset
O'Leary classified Bitcoin as a separate category and said that the leading cryptocurrency is much more volatile compared to others.
"A little more risky and a lot more volatile is, of course, Bitcoin," he mentioned.
He underlined that Bitcoin remains a speculative asset and emphasized that institutional adoption of the top crypto is still hindered by regulatory concerns (at least for now).
The investor referred to the CLARITY Act that has not yet become law.
In September, this bill faced a significant defeat when it failed to pass in the Senate.
Turning to Ethereum (ETH) and other blockchain tokens, O'Leary compared blockchain technology to enterprise software, stressing that adoption is crucial.