One of the United States’ most prominent entrepreneurs has expressed a strong opinion on the country’s financial regulators’ approach to the industry. Specifically, Dallas Mavericks owner Mark Cuban has said that the US Securities and Exchange Commission (SEC) approach to crypto led to the FTX debacle and subsequent billions in losses.
In a recent Tweet, Cuban spoke on the FTX situation. In particular, focusing on the difference in how the situation was handled. Cuban stated the SEC should have “clear regulations that required the separation of customer and business funds and clear wallet requirements,” to avoid the fraud that ended up occurring.
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Cuban Targets SEC Crypto Approach
The US regulatory standard for the digital asset industry has long been an issue. Moreover, with the collapse of FTX, the regulatory agency has been under a microscope. A situation that had led to enforcement action being taken against a host of crypto exchanges in the country.
Now, Mark Cuban has taken aim at the agency, stating that the SEC’s crypto approach led to billions in FTX losses. Specifically, Cuban noted that the agency opted to “litigate to regulate.” Subsequently, it was noted that their inadequate regulation had led to issues that ended up taking place with the now-collapsed cryptocurrency exchange.
Alternatively, Cuban noted that no investors in FTX Japan lost money after the collapse. Conversely, noting that the SEC “chose the wrong path to regulate crypto and cost billions.” Ultimately, taking aim at the overall action of the agency in setting the entire industry back.
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“The SEC is not infallible. It makes mistakes. In this case, it chose the wrong course. It was arrogant in thinking that its framework covered every possible situation,” Cuban remarked. Additionally, noting that, in the end, crypto “will succeed or fail based on its merits.”
This kind of perspective against the SEC is not limited to Cuban, as many have called out the agency’s approach to regulation. Moreover, US Congress has even gone as far as to introduce legislation to eliminate SEC chair, Gary Gensler. Subseuqnelty reorganizing the agency, based on its recent failures.