During a recent episode of the All-In Podcast, billionaire Mark Cuban criticized SEC Chairman Gary Gensler’s regulatory approach, suggesting that it could have prevented the downfalls of FTX and Three Arrows Capital (3AC). Cuban expressed his belief that Gensler’s preference for enforcement actions over clear regulations is inefficient and ultimately detrimental to the crypto industry.
Cuban highlighted his own experience trying to register a token with the SEC, citing the overly complicated registration process and lack of clarity as major obstacles. He argued that Gensler should focus on implementing clear rules that encourage responsible operations, similar to Japan’s crypto lending regulations. Cuban suggested that had these standards been in place in the US, the collapses of FTX and 3AC might have been avoided.
He specifically mentioned Japan’s requirement of 95% collateral and cold storage for crypto lending, pointing out that if Gensler had followed similar rules, FTX and 3AC could still be in business today.
Recently, Cuban speculated that Kamala Harris might replace Gensler if she becomes President. Gensler has also faced criticism following the SEC’s decision to appeal in the Ripple case, with Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty condemning the move as a waste of taxpayer resources.
Cuban’s Support for John Deaton and Criticism of Elizabeth Warren
Mark Cuban publicly endorsed John Deaton, who is running for US Senate against Elizabeth Warren. Cuban expressed his dissatisfaction with Warren’s approach to crypto regulations, citing her desire to eliminate crypto due to concerns about its potential use in funding illegal activities.
Cuban praised Deaton’s background, character, and pro-crypto stance, stating that he believes Deaton would be a better choice for the country and the citizens of Massachusetts than Elizabeth Warren. He revealed that he had been supporting Deaton even before his official entry into the race, offering feedback and advice along the way.