Coinspeaker Mark Cuban Criticizes SEC, Suggests Better Regulatory Approach Could Have Saved FTX and 3AC
American businessman Mark Cuban has once again slammed the regulatory approach of the US Securities and Exchange Commission (SEC), under the leadership of Gary Gensler. The billionaire aired his view on the latest episode of the All-In Podcast.
Mark Cuban Slams Gensler’s SEC, Lauds Japan’s Regulatory Approach
Cuban blamed Gensler for the fate that befell crypto firms such as FTX and Three Arrows Capital (3AC). He noted that things could have turned out differently for these firms if the SEC Chairman had focused on providing clear regulations rather than the enforcement actions he took as his favourite way to handle crypto regulation.
According to Cuban, the enforcement approach by the SEC and Gensler has proven to be largely inefficient. If not for anything else, the businessman claims to have a personal experience of the SEC’s complex ways after attempting to register a token with the agency. However, as it turned out, those efforts proved abortive.
Mark Cuban says the process was overly complicated, and there were no clear guidelines. Part of his statement regarding Gensler reads:
“The point there is that he has an approach that is regulation through litigation. He’s going to sue you first, ask questions later, and hope that the result of that litigation becomes a rule that everybody else has to follow.”
Instead of employing such methods that may be crippling innovation, Cuban suggested that the SEC should have implemented clear rules that encourage companies to operate in a responsible manner.
Speaking about the now-defunct FTX exchange and others like it, Cuban cited Japan’s crypto lending regulations as something that could have saved them. He noted that, had the SEC had similar standards in place, the uneventful collapses of FTX and 3AC may not have happened. The billionaire’s belief was captured in a part statement where he said:
“Bankman-Fried might still be in jail, but FTX, 3AC, they’d still be in business.”
An All-Out War
Cuban’s recent criticism of Gensler’s ways is a direct reflection of what the majority of the crypto industry thinks of the SEC Chair. The agency has taken enforcement actions on virtually every crypto firm, including bigwigs like Coinbase and Binance.
Furthermore, the regulator has been involved in various legal battles, of which the Ripple case is arguably the most popular and lengthiest one. However, after Ripple recorded a resounding victory against the SEC a few weeks ago, Gensler has again decided to appeal the decision, leading to widespread criticism.
Presently, the tension between the SEC and the crypto industry is beginning to escalate. As a fact, many insiders, including Cuban, are already calling for a change in leadership or at least a dramatic shift in the regulatory approach. The future of the U.S. crypto market may rely on how these issues are resolved in the coming months.
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Mark Cuban Criticizes SEC, Suggests Better Regulatory Approach Could Have Saved FTX and 3AC