Mark Cuban Slams Gary Gensler For SEC’s Crypto Crackdown: ‘FTX Would Still Be In Business’

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As a seasoned researcher with years of experience in the financial industry and a keen interest in cryptocurrencies, I find myself aligning with Mark Cuban’s perspective on the current regulatory landscape. His criticism of the SEC’s approach towards crypto regulation is not only timely but also insightful.

Billionaire and crypto advocate Mark Cuban criticized the US Securities and Exchange Commission (SEC) Chairman for his crackdown on the industry, arguing that FTX and Three Arrows Capital (3AC) would still be in business if it weren’t for the US regulator.

SEC Chairman Under Fire For Crypto Crackdown

Mark Cuban recently joined two podcasts on Thursday to discuss industry-related topics, including the US elections, crypto adoption, and the SEC’s regulatory stance. The billionaire heavily criticized the US regulator and its chairman, Gary Gensler, for their “regulation via enforcement” approach to the sector.

During an interview with Farokh Sarmad, Cuban expressed once again his ongoing dissatisfaction with the Commission. He stated that he prefers clear-cut regulations, often referred to as “bright line rules,” over regulations established through legal disputes.

As a passionate crypto investor, I’ve been vocal about my concerns regarding the SEC’s transparency issues. I believe they’ve been attempting to shape the law through their court rulings rather than establishing clear regulations from the outset. This approach has been a recurring point of criticism towards this regulatory body.

Last week in CNBC’s green room, he openly discussed his issues with Gensler, explaining the grounds for his criticism. “I explained to him,” he recounted, “that you’re jeopardizing the entire situation by moving industries abroad (…). That’s incorrect because it begins with crypto but has broader implications.

Nevertheless, Cuban contends that the SEC’s chairman may not fully understand the intricacies of the issue at hand. He implies that Gensler possesses some characteristics similar to Elizabeth Warren, suggesting he might be overzealously trying to act as a public servant by saving the world, and in doing so, is targeting the sector with an aggressive stance against its “questionable players.

On the All-In podcast, the entrepreneur repeatedly criticized the U.S. regulatory body, stating that but for Chairman Gensler, crypto businesses such as FTX and 3AC wouldn’t be facing bankruptcy. He contended that if the regulator had adopted a more suitable strategy, these companies could have functioned responsibly, shielding investors from potential harm.

Instead of suggesting what he should have done, let’s explain how things could have turned out differently: If Bankman-Fried had adhered to the “bright line regulations” like those implemented in Japan for crypto loans, FTX might still be operational today. Under this system, FTX would have been required to maintain 95% collateral for any loaned Ethereum, and 95% of that collateral would need to be stored in Cold Storage. This could have prevented the financial crisis that led to the downfall of both FTX and 3AC. While Bankman-Fried may still be incarcerated, these companies might still be thriving under such regulations.

Harris’ Campaign ‘Knows Gensler Screwed It Up’

A billionaire recently disclosed the content of his talks with Vice President Kamala Harris, as well as her electoral campaign. Notably, Cuban has expressed his support for the Democratic candidate in the forthcoming November presidential race by making it public.

During an interview, Farokh expressed his personal viewpoint that appointing Gensler as the SEC’s chair was not favorable for the Biden-Harris administration. He believes this choice could potentially lead to problematic outcomes in all the decisions made under his leadership.

Cuban further asserts that Harris and her campaign are cognizant of the situation, “they recognize that he made a mistake, which is why you haven’t heard her offer any praise for him.” He views not endorsing Gensler as a significant and favorable move in relation to her stand on cryptocurrency, a stance that has faced much scrutiny.

To wrap things up, it became clear that his offer to serve as the SEC’s chairman under Harris’ administration was merely a playful jab or tease, known as “trolling”. In reality, the billionaire aimed to initiate a discussion and convey to Gensler that he believes Gensler is making mistakes in his role.

Mark Cuban Slams Gary Gensler For SEC’s Crypto Crackdown: ‘FTX Would Still Be In Business’

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2024-10-05 16:42