Billionaire investor Mark Cuban has voiced strong criticism against Gary Gensler, the chair of the U.S. Securities and Exchange Commission (SEC), for making overly complex regulations for cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD and others. During an appearance on the All In Podcast, Cuban argued that Gensler’s regulatory approach is hindering the growth of the crypto industry.
What Happened: Cuban highlighted the challenges faced by small companies in complying with SEC regulations. He recounted his own experience with his company, lazy.com, where he attempted to release a token but found the process prohibitively expensive and complicated. Cuban stated that the current regulatory framework is not feasible for businesses with limited revenue.
“What happens is, Gary Gensler is making it so difficult to register, and what he should be doing is saying, here’s the bright line: regulations.”
Cuban explained that Gensler with a more straightforward regulatory approach, similar to Japan’s, could have prevented the collapse of firms like FTX and Three Arrows Capital.
“If FTX wants to loan out all their Ethereum, you have to do what they did in Japan – you have to have 95% collateral and 95% of anything needs to be put in cold storage. If he had followed the same rules for crypto that Japan did, FTX would still be in business. Sam Bankman free might still be in jail, but FTX, three arrows capital, they’d still be in business because he did the wrong thing,” Cuban explained.
The billionaire entrepreneur also criticized Gensler’s method of “regulation through litigation,” suggesting that it creates uncertainty and stifles innovation.
Cuban also expressed support for John Deaton, who is challenging U.S. Sen. Elizabeth Warren, citing Deaton’s pro-crypto stance and character as reasons for his endorsement.
Why It Matters: Cuban’s criticism of Gensler is not new. In a recent interview, Cuban expressed interest in becoming the next Chair of the SEC, citing dissatisfaction with Gensler’s leadership. Cuban described the current SEC policies as “awful” for business growth, particularly in the crypto sector. His support for John Deaton further underscores his opposition to Elizabeth Warren‘s anti-crypto stance, which has been backed by Gensler. Cuban has been vocal about his belief that Warren’s approach could harm the industry by dismissing its potential benefits.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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