SEC Makes It ‘Impossible’ For Crypto Companies to Operate in US, Says Billionaire Mark Cuban

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Billionaire investor Mark Cuban has lashed out at the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler, for their approach to cryptocurrency regulation, claiming that the regulatory body is stifling the digital asset industry in the U.S.

In a recent post on X, Cuban accused the SEC of making it nearly impossible for companies to comply with registration rules, thereby hindering the growth and development of the crypto industry.

Cuban revealed that he has now decided to reject investment opportunities involving token releases due to the SEC’s recent behavior. However, he clarified that his decision is not a reflection on the companies themselves but rather a response to the restrictive policies imposed by the SEC.

The entrepreneur highlighted that the SEC’s actions have created an arduous and costly process for companies seeking to operate legitimately, making it increasingly challenging for them to comply with regulations.

“The cost in time and legal fees to attempt to register and comply make it impossible to realistically operate,” he wrote.

Cuban urged the SEC to implement measures that would facilitate compliance and protect investors. He emphasized that the crypto industry is eager to find ways to register, comply, and reduce speculative noise, but the SEC’s current approach fails to differentiate between legitimate companies and “junk tokens”.

Key Takeaways

  • Mark Cuban has criticized the SEC and Chairman Gary Gensler for implementing restrictive policies that hinder the growth of the U.S. crypto industry.
  • Cuban has opted out of investing in token releases due to the SEC’s cumbersome registration process, which he believes makes it impractical for companies to operate.
  • The billionaire also emphasized the role of cryptocurrency in politics, predicting that crypto will significantly influence the 2024 election.
  • A recent survey suggests that the crypto community significantly supports Donald Trump for the 2024 election.

Cuban Criticizes SEC Chair Gary Gensler

Cuban directly criticized SEC Chairman Gary Gensler for creating a legacy that hinders good companies from operating in the right way. He suggested that the SEC could rectify the situation by introducing regulations specific to the crypto industry.

“Just look at the actual number of operating companies that have successfully registered their tokens [with] the SEC in the USA and successfully continue to operate,” he wrote. “Are there any at all?”

Over the past year, the SEC has filed numerous lawsuits against crypto firms, with Gensler consistently asserting that most cryptocurrencies should be classified as securities.

OVer the last year, the SEC filed lawsuits against major crypto players, including Binance, its CEO Changpeng Zhao, and Coinbase.

Crypto to Play Key Role in Election

The billionaire investor also highlighted the significance of the crypto industry in the upcoming 2024 election. Responding to former presidential candidate Donald Trump’s interest in crypto, Cuban stated that crypto would play a substantial role in the election, particularly with younger and independent voters.

Cuban criticized Gensler for failing to protect investors against fraud and warned Congress that crypto voters would make their voices heard in the election.

“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.”

Alternatively, Cuban proposed assigning crypto regulation to the Commodity Futures Trading Commission (CFTC) as a more favorable option.

Cuban, known for his entrepreneurial ventures and ownership of the Dallas Mavericks NBA team, has been an active advocate for the potential of cryptocurrencies.

Trump Poll Numbers Boosted By Crypto Community

A recent survey conducted by leading crypto venture capital firm Paradigm reveals that Trump’s poll numbers for the 2024 US Presidential Election enjoy significant support from the crypto community.

The survey, which included 1,000 registered voters, found that 48% of crypto owners plan to vote for the former president, while 39% intend to vote for current U.S. President Joe Biden.

US election polls, conducted by Virginia-based Public Opinion Strategies between February 28 and March 4, coincided with Bitcoin’s price surge from $58,000 to an all-time high of $68,000.

During a rally last week, Trump told the crowd that President Joe Biden “doesn’t even know” what cryptocurrency is. “If you like crypto in any form, and it comes in a lot of different forms, if you are in favor of crypto, you better vote for Trump,” he added.

The Bottom Line

Mark Cuban has expressed strong criticism towards the SEC and its chairman Gary Gensler, accusing them of stifling the growth of the U.S. cryptocurrency industry through restrictive regulatory practices.

The billionaire also notes the significant role of cryptocurrency in shaping voter preferences in the upcoming 2024 election.

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