- Billionaire investor Mark Cuban has criticized the US SEC and its Chairman Gary Gensler over the weekend through posts shared on the social platform X (formerly Twitter)
- Cuban made the claim that they were actively hurting the industry and its actions – as well as inaction – has failed to protect a single investor from fraud
- He has warned that the crypto community’s concerns are of great importance and could influence upcoming elections – addressing the US Congress in the same statements
In a series of outspoken posts on the social media platform X (formerly known as Twitter), famous billionaire investor Mark Cuban has vehemently criticized the U.S. Securities and Exchange Commission (SEC), especially its chairman Gary Gensler, due to their actions regarding crypto and crypto regulations in the US. More specifically, Cuban says that the regulatory actions—or lack thereof—have stifled the growth of legitimate cryptocurrency businesses without safeguarding crypto investors against fraud.
Cuban’s Statements
In a now damning post on X, Cuban has made the claim that SEC Chairman Gensler has failed to protect a single cryptocurrency investor against any of the fraud that has been perpetrated in the space. His words:
“Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD.”
As you might have guessed, this sentiment has been echoed by a large chunk of the crypto industry – especially those who are quite active on the social platform X. In the same post, Cuban also addressed the US Congress, saying:
“This is also a warning to Congress. Crypto voters will be heard this election. You could solve this problem for Biden by passing legislation that defines registration that is specific to the crypto industry just as other industries have registration that is defined for them.”
Meanwhile, Cuban also shared a follow-up and related post wherein he elaborates on how both Gensler and the US SEC are “trying to destroy the crypto industry” as a whole. According to Cuban, “They make it impossible to comply with registration rules.”
“Since the SEC decided to litigate to regulate rather than make any effort to increase compliance, if I get an investment opportunity that is going to release a token, it’s now a no from me,” said Cuban. “Not because of the company itself, rather because the SEC will not allow it to operate. The cost in time and legal fees to attempt to register and comply make it impossible to realistically operate.”
Cuban continued, “They have created a destructive environment that could easily be remedied in a way that would increase compliance dramatically and actually protect investors.”
US SEC’s Response
As of this writing, there has not been a clear and specific response from either the SEC or Gensler himself regarding the statements made by Cuban. With that said, the SEC has continuously maintained a firm stance on the apparent need for more stringent crypto regulation – with the aim of protecting investors and thereby ensuring market integrity. Its approach is undoubtedly meant to reflect a broader regulatory philosophy that puts investor protection first via things like compliance and regular enforcement actions.
Prominent industry figures like Cuban, of course, reject the notion that the SEC and its chair have been successful with their plans. They continue to advocate for much clearer and more business-friendly guidelines for those who want to keep working in and adjacent to the industry – such as the most active crypto exchanges – if that is possible.
For now, the price of crypto has appeared to remain steady above $60k – holding at a price of just around $63k right after a somewhat uneventful sideways weekend. Time will tell whether the SEC attempts to dish out any response at all or make any changes after Cuban’s statements. But at least it seems like the industry will just keep on going – just like usual.