Mark Cuban criticizes SEC Chairman Gensler’s stance on cryptocurrencies

Billionaire investor Mark Cuban criticized US Securities and Exchange Commission (SEC) Chairman Gary Gensler for the agency’s unclear regulations, claiming they make it “almost impossible to “that cryptocurrency investors and entrepreneurs get clarity from the regulator.

Cuban was responding to Gensler’s recent statement Wall Street Journal opinion piece, in which the head of the SEC once again reiterated his focus on protecting investors. In the opinion piece, Gensler wrote that “there is no reason to treat the crypto market differently from the rest of the capital markets just because it uses a different technology.”

“The SEC will serve as police on the road. Just like with seat belts in cars, we need to ensure that investor protections are standard in the crypto market,” Gensler added.

Cuban, however, wondered how exactly investors and crypto businesses are supposed to communicate with the SEC.

“Come in and talk to who? Schedule an appointment how? Are you using Calendly these days? Since you understand crypto lending/finance, why not just post the bright line guidelines you’d like to see and open them up for comments? Cuban tweeted in response to Gensler’s post.

The 63-year-old Shark Tank star and owner of the NBA’s Dallas Mavericks has been actively investing in the crypto space in recent years, with projects like OpenSea, CryptoSlamand SuperRare as part of its briefcase.

The BlockFi case

In his op-ed, Gensler cited the case of crypto lending platform BlockFi, which in February agreed to pay $100 million to resolve investigations by the SEC and other federal and state securities regulators.

Referring to BlockFi’s high-yield interest accounts and the company that lends the borrowed crypto assets at higher rates, Gensler said that “the issue was what it did with the borrowed assets and what it didn’t do as a company: provide required disclosures to investors.” .”

According to Gensler, the SEC considers those high-yield interest accounts to be securities, which BlockFi did not register as such.

“Fortunately, there is a way forward. I encourage platforms offering crypto loans to come in and talk to SEC staff. Bringing these platforms into compliance with securities laws will benefit investors and the crypto market,” added Gensler.

In an earlier Twitter thread on Monday, the SEC chairman also wrote that the agency’s “rigorous enforcement regime … is about following the facts and the law, wherever they lead, on behalf of investors and working families.

“If you were working on behalf of investors, it would make it easier for investors and entrepreneurs to ask and answer questions. You make it almost impossible. Those who can’t afford lawyers can only guess,” Cuban said in response to Gensler’s statement.

This is not the first time that Cuban has criticized the SEC’s approach to cryptocurrencies.

Last month, following the recommendations of the agency claim (it is that at least nine cryptocurrencies considered unregistered securities were traded on the cryptocurrency exchange base of coinsCuban said that if anyone thought that was a bad move in and of itself, they should wait to see what the SEC proposes for token registration.

“That is the nightmare that awaits the cryptocurrency industry. How else does it keep thousands of lawyers employed and create reasons to ask for more taxpayer money?”

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