Bitrabo Editorial
Mark Cuban, a billionaire and proponent of cryptocurrency, has strongly criticized the chairman of the US Securities and Exchange Commission (SEC) for his aggressive regulation of the industry, arguing that companies like FTX and Three Arrows Capital (3AC) would likely still be operational without the SEC’s interference.
SEC Chairman Faces Criticism Over Regulatory Approach
Recently, Mark Cuban participated in two podcasts to address various topics related to the cryptocurrency sector, including US electoral politics and cryptocurrency adoption. He was particularly vocal about his disapproval of the SEC and its chairman, Gary Gensler, labeling their approach as “regulation via enforcement.”
During an interview with Farokh Sarmad, Cuban expressed his long-standing frustration with the SEC, advocating for clear regulatory guidelines over litigation-based regulation. He emphasized preferential straightforward regulations rather than relying on legal battles to define the rules.
Cuban criticized the SEC’s lack of clarity, arguing that the agency has been basing its regulations on the outcomes of lawsuits rather than establishing definitive rules from the beginning—a recurring critique of the regulatory body.
He also shared his direct confrontation with Gensler at CNBC, where he articulated his concerns about the damaging impact of the SEC’s policies. He noted, “You’re pushing industries overseas, and that’s not right, especially since this issue starts with cryptocurrency and spreads to other sectors.”
Despite their exchange, Cuban felt that Gensler failed to grasp the consequences of his regulatory actions. He suggested that Gensler might be attempting to play a savior role, reminiscent of Elizabeth Warren, in his crackdown on perceived bad actors in the crypto space.
On the All-In podcast, Cuban reiterated his assertion that the SEC’s destructive policies directly contributed to the downfall of companies like FTX and 3AC. He insisted that had the SEC adopted a more reasonable regulatory strategy, these businesses could have operated soundly and protected their investors:
Instead of regulation through litigation, if he outlined clear guidelines, like what Japan does—requiring 95% collateral and keeping assets in cold storage—then companies like FTX might still be thriving. Sam Bankman-Fried could be in jail, but FTX and 3AC would still exist.
Harris Aware of Gensler’s Missteps
Cuban disclosed some conversations he had with US Vice President Kamala Harris and her campaign team, expressing his support for her as a Democratic candidate in the upcoming Presidential election.
In discussions, he mentioned that her campaign recognizes Gensler’s shortcomings as SEC chairman, implying that it has created a problematic environment for the Biden-Harris administration. Cuban noted that her silence on Gensler’s efforts speaks volumes about his administration’s crypto policies.
He believes that Harris’ failure to back Gensler is a significant and favorable indication of her potential stance on cryptocurrency, especially given previous skepticism regarding her position.
Finally, he revealed that his joking suggestion to be the SEC chair under a Harris presidency was intended to spark conversation and indicate to Gensler that his approach is misguided.