In a recent tweet, billionaire Mark Cuban criticized the US Securities and Exchange Commission’s (SEC) approach to crypto regulation.
Billionaire Cuban claims that it is not clear how crypto companies should communicate with the SEC. In addition, Cuban invited the SEC to publish what it describes as “bright line regulations.”
SEC’s Approach Became Mark Cuban’s Target
Dallas Mavericks owner Mark Cuban’s comment came in response to an article recently penned by SEC Chairman Gary Gensler. The SEC’s “regulation by application” approach came under fire after the SEC sued blockchain company Ripple.
Come in and talk to who ? Set up an appointment how ? You using Calendly these days ? Since you understand crypto lending/finances, why don't you just publish bright line guidelines you would like to see and open it up for comments ? https://t.co/N3KQAnutl9
— Mark Cuban (@mcuban) August 22, 2022
Gensler says that despite the innovation of the technology, securities laws must be applied to crypto assets. He made a comparison between cryptocurrencies and cars that continue to use key security features despite advances in the automotive industry.
According to Gensler, cryptocurrencies should not be treated differently because they use different technology. Also, with the recent turbulent events in the Gensler crypto industry, he thinks crypto companies must comply with current securities laws. The SEC boss also emphasized in his post that cryptocurrency lending platforms offering securities fall under the scope of the U.S. Securities and Exchange Commission. Gensler urged crypto lenders to “come and talk” to keep them in compliance. Gensler has repeatedly stated that the majority of cryptocurrencies are unregistered securities. However, he recently announced that Bitcoin is a commodity.
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