Mark Cuban Criticizes SEC Over Wrong Crypto Regulations

Mark Cuban. (Photo; Doc. Bitcoinist)

JAKARTA - Mark Cuban, star Shark Tank and NBA team owner Dallas Mavericks, has issued sharp criticism of the US Securities and Exchange Commission (SEC) for a misregulatory approach in regulating the crypto sector.

Many crypto supporters have criticized the SEC and its chairman, Gary Gensler, for focusing on law enforcement in regulating the crypto sector. Recently, the securities regulator has taken action against several major crypto exchanges, including Coinbase and Binance.

Cuban highlighted that the SEC "choose the wrong path in organizing." He asserted that crypto is a technology that can succeed or fail based on its advantages.

Cuban stated, "SEC has made mistakes in choosing a regulatory approach and costing billions of dollars. The SEC is not the perfect body and they have made mistakes by choosing the wrong path in this regard."

While many people in the crypto sector are pushing the SEC to provide clear rules for crypto companies to comply with regulations, SEC Chair Gensler has repeatedly stated that the law is clear and the existing framework is sufficient to regulate the crypto sector.

Cuban responded by saying that it is arrogant to think that the existing framework includes all possible situations in the crypto sector.

There is a marked difference in approach between US SEC regulations and approaches adopted by Japanese regulators in the crypto industry. Cuban pointed out that when the FTX crypto exchange had problems in the US, "no one in FTX Japan lost money."

He highlighted the need for clear regulations requiring separation of customer and business funds, as well as clear wallet requirements. According to Cuban, the best way to protect crypto investors is to adopt clear investor protection regulations, as Japan does.

Last month, Cuban gave advice on how the SEC could better manage the crypto industry. He proposed implementing a special registration process for crypto companies and developing a token registration framework to accommodate various types of tokens.

The criticism delivered by Mark Cuban reflects the concern of many crypto industry players towards the regulatory approach implemented by the SEC. While regulation is needed to protect investors and promote sustainable growth, it is also important to consider the diversity and innovations that exist in the crypto sector.