Billionaire entrepreneur Mark Cuban locked horns with former securities chief John Reed Stark again, this time over who was ultimately blamed for the collapse of FTX and the impact on lenders.
During the heated back and forth exchangeCuban argued that if the United States Securities and Exchange Commission had set “clear rules,” no one would have lost money from its collapse.
Stark has previously suggested that cryptocurrency and stablecoins — including central bank digital currencies — don’t solve any problems and that the crypto industry operates without regulatory oversight, consumer protections and audits, among other things.
You should read how Japan handles regulation. https://t.co/yHCVwZAqvG
When FTX crashed, NOBODY IN FTX JAPAN LOST ANY MONEY.
If the US/SEC would follow their lead and establish clear regulations requiring the separation of customer and trading funds and clear… https://t.co/Msvn9o9PCU
— Mark Cuban (@mcuban) July 4, 2023
Kubánsky argued that Japanese regulators — an increasingly Web3-friendly jurisdiction — are an example of a regulator that got it right.
“When FTX crashed, NO ONE AT FTX JAPAN LOST ANY MONEY,” he said.
stark — cryptocurrency skeptic – shot back, saying it “seems a bit tiresome” to blame the SEC for the collapses of FTX, BlockFi, Celsius, Terra, and Voyager, or what he called “dumpster fires.”
While Stark admitted the SEC isn’t always right, he claimed the regulator has saved investors “millions, maybe even billions” in cryptocurrency losses.
A former SEC official claimed that while the cryptocurrency industry seeks regulatory clarity whenever rules are announced or proposed, “the crypto industry cries foul” and often responds by filing “flamboyant legal challenges to its enactment.”
Cuban hit back, explaining that “the best way to prevent cryptocurrency fraud is to implement ‘clear regulations to protect investors.’ Added by:
“Anyone who does not register is a de-facto violator, cannot work and will be shut down. This is how you protect crypto investors.”
But Stark claims the SEC charged companies like Binance, Coinbase, Beaxy and Bittrex only months after the regulator made it clear the firms were not in compliance.
“[These firms] chose to ignore the SEC — and reap profits as long as possible without registering,” Stark added.
This is worth looking into Mark, thanks.
Laws in Japan require crypto exchanges to register with authorities, to keep customers’ money separate from their own accounts, to keep at least 95% of customers’ digital assets in a cold wallet, and to entrust clients’ holdings…
— John Reed Stark (@JohnReedStark) July 4, 2023
It is the second time in three weeks that the pair have met how cryptocurrency should be regulated.
On June 11, Cuban sued the SEC for allegedly failing to provide cryptocurrency firms clear registration process.
He argued that it is “almost impossible to know” what constitutes a security because the SEC’s “Framework for Analyzing Digital Asset ‘Investment Contracts'” document it does not explain how cryptocurrency firms can achieve compliance.