Mark Cuban, a well-known investor worth billions, has expressed his displeasure with the fact that the US Securities and Exchange Commission (SEC) did not take the vacancy to regulate the crypto market properly. Author of the recent tweet on the social media X, Mark Cuban maintained that crypto regulations should be governed by the U.S. Commodities Futures Trading Commission. He underlined that the current stance of the SEC is hindering the smooth operation of crypto businesses in the US.
For Mark Cuban, the SEC, headed by Chair Gary Gensler, has taken an extremely aggressive enforcement strategy. Data materialized by the litigation consulting firm Cornerstone Research shows that in 2023, there were 46 SEC enforcement actions against crypto companies. According to the same surveys, these regulatory conditions have made it nearly impossible for cryptocurrency companies to reach their full potential, leading to a reduction of innovation in the sector and investors alienated or withdrawing from the field.
Mark Cuban advocates for clear crypto laws
Mark Cuban’s critique goes further than the SEC’s operational methods. He directly addresses Congress, asking for clear and specific crypto regulations before the 2024 presidential elections. In making registration and regulatory frameworks targeted specifically at the crypto industry, he contends that this would not only help businesses but would also work to support President Joe Biden’s re-election bid. He proposes that failing to create such clarity could let Gensler and the SEC off the hook so they do not have to take responsibility for not safeguarding the investors adequately.
If @joebiden loses, there is a good chance you will be able to thank @GaryGensler and the @NewYork_SEC Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD All he has done is make it nearly impossible for… https://t.co/uBKupxLhS9
— Mark Cuban (@mcuban) May 10, 2024
The investor further informs that this demographic of young, independent voters has significant support for cryptocurrency, which would play a huge role in policymaking. An April online survey showed the majority of voters support the idea that crypto is egalitarian and actually a good investment for regular people.
CFTC warns of more crypto enforcement actions
The discussions over the right government agency to be in charge of monitoring cryptocurrencies will continue with the CFTC Chair Rostin Behnam warning in his recent statement that there will be more enforcement actions to come. The proposal of transferring the oversight to the CFTC is evocative of a general tendency in the industry that is supportive of a regulatory framework that can better address the specific characteristics of the new forms of cryptocurrencies and digital assets.
In addition, recent debates about the Biden administration’s stance on cryptocurrencies, such as opposition to a joint resolution intended to forbid SEC guidelines from discouraging financial institutions from keeping crypto assets, highlight the growing confrontation between the crypto community and federal regulators. Therefore, the regulatory framework should be seen as more than a mechanism for protecting investors but also as a basis for supporting the development and integration of the crypto sector into the mainstream.
