Mark Cuban Argues Crypto Regulation 'Not A Bad Thing' As Controversy With NFT Platform Opeansea Sparks Worries

Dogecoin DOGE/USD bull Mark Cuban broached the subject of cryptocurrency regulation on Twitter Wednesday.

What Happened: Cuban said in a series of tweets that “any discussion of crypto regulation has to start with the facts that there are already laws against fraud and that ‘crypto’ is not monolithic.”

As per the “Shark Tank” host, stablecoins such as USD Coin USDC/USD and Tether USDT/USD would be the first to get regulated. 

“The variance in the definition by product. What is a peg? What is an algorithmic stablecoin? Is it stable? Do buyers understand what the risks are? It needs standards.” said Cuban on such coins.

On smart contracts, Cuban said they are the “most likely source of fraud.” Listing the probable issues with the technology, he said, “Intentional omissions, undisclosed actions, lack of clarity by users.”

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Therefore, as per Cuban, federal authorities will not allow anonymous smart contracts.

“Someone will need to take responsibility or it will be deemed illegal, which may prevent off shore contracts from being legal if they don’t register. Proof of Authorship and Identity could be a thing.”

Apart from stablecoins and smart contracts, Cuban also touched on tokenomics, which he said was a “confusing and ripe opportunity for fraud.”

Generally on regulation, Cuban said if it was built on existing fraud laws it is “not a bad thing.”

“It will require Proof of Authorship and identity but it won’t hurt innovation, nor slow anything down. It will open the door for more people to confidently use ‘crypto.'”

Why It Matters: The Dallas Mavericks owner made his comments at a time when non fungible tokens marketplace OpenSea is in the midst of a controversy surrounding insider trading.

Cuban recently advocated for the inherent use case of cryptocurrencies beyond what the name of the asset suggests. He has stood for the development of smart contract platforms such as Ethereum ETH/USD. 

See Also: Mark Cuban Wants Coinbase To Be 'Aggressive' In Its Dealings With SEC For Greater Good Of Crypto Industry

In June, Cuban said that aside from Bitcoin BTC/USD and ETH, Polygon MATIC/USD, an Ethereum Layer 2 scaling solution, is “destroying everybody else.” Cuban revealed he has invested in MATIC.

Several smart contract currencies like Cardano ADA/USD and Avalanche AVAX/USD have been buoyant of late.

While ETH is up 390.09% since 2021 began, ADA and AVAX have shot up 1281.26% and 1719.84% in the period respectively. 

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Photo: Courtesy of Gage Skidmore via Flickr