Mark Cuban claims that the SEC’s crypto approach resulted in billions of dollars of losses
Cuban thinks that the SEC should have imposed “the division of customer and business funds and clear wallet requirements” to keep clients from losing money.
American business mogul, TV personality, investor, and Dallas Mavericks owner Mark Cuban has publicly criticised the US Securities and Exchange Commission (SEC) for taking “the wrong path” in its attempt to regulate the cryptocurrency market.
The latest wealthy individual to criticise America’s securities regulator is billionaire Mark Cuban. He recently tweeted that it was to blame for the cryptocurrency industry’s massive investment losses because of a lack of regulation.
No one in the United States would have lost money on FTX if the Securities and Exchange Commission (SEC) had established laws mandating the segregation of client and company funds and unambiguous wallet requirements.
Further, he said the SEC’s decision to ignore the cryptocurrency industry was the “wrong course” they could have taken. He came to the conclusion that the regulator is “not infallible,” that it “makes mistakes,” and that it “was arrogant” to believe that its regulations covered every eventuality.
Cuban thinks Japan is one of the nations that has implemented a full crypto regulatory framework. He claims that the measures taken have shielded local investors from the FTX crash. You may recall that at the end of February, customers of the Japanese arm of the once-dominant Bitcoin exchange were able to withdraw their funds.
He also mentioned the “millions, perhaps even billions” of dollars the Commission had rescued from investor crypto-losses, which Cuban had forgotten.
Stark thinks the SEC has a tough time regulating the digital asset market because it is an “anarchical financial industry” with no insurance, cybersecurity requirements, or licencing program.
He also said the crypto community is unsatisfiable since its members always find something wrong with new laws:
“When a government legislation, rule, or regulation addresses crypto directly, crypto lobbying organisations object and bring endless litigation.”