Amid the growing regulatory concern in the United States, more industry leaders are beginning to speak up against the Securities and Exchange Commission (SEC) and its Chairman Gary Gensler. The latest to join the series of criticisms is billionaire investor Mark Cuban. Taking to his official X account, Cuban outlined the failures of the SEC chair at the helm of affairs at the commission.
According to Cuban, unlike the claims and the precept upon which the SEC was founded, Gary Gensler has not protected a single investor against fraud. Rather, Cuban highlighted that Gensler has made it "nearly impossible for legitimate crypto companies to operate, killing who knows how many businesses and ruining who knows how many entrepreneurs."
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The regulation by enforcement tactics of the SEC remains a major concern for many crypto stakeholders. Over the past year, the SEC has picked up a legal fight against Coinbase, Binance and Kraken over the securities status of their listed assets.
Notably, the regulator claimed that top digital currencies like Ethereum (ETH), Cardano (ADA), Solana (SOL) and Polygon (MATIC) are investment contracts.
This classification has triggered a series of debates, especially regarding Ethereum. With spot Ethereum ETF approval in view, the industry is uncertain what the fate of the product will be. At the moment, the consensus is that the approval rate is low with limited clarity on the position of the market regulator.
Drawing on this lack of clarity, Mark Cuban has lent his voice to demand that Congress should hand over the regulation of the crypto ecosystem to the Commodity Futures Trading Commission (CFTC).
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For the past few years, there has remained a subtle power tussle between the SEC and CFTC with often contradictory takes on what assets constitute market security or not.
In all, the clamor for crypto regulation remains stronger than ever with the advent of spot Bitcoin ETF products.