Mark Cuban criticizes SEC’s approach to crypto
Billionaire investor Mark Cuban has argued that the Securities and Exchange Commission’s (SEC) approach to crypto leaves entrepreneurs and startups without clear guidance. He denounced the convoluted rules for startups to follow, particularly in the web3 space. Cuban suggested that the SEC and Congress should create a basic registration system for tokens and exchanges that can enable startups and industry giants alike, while still protecting investors.
Cuban expressed his frustration on Twitter, stating that “dorm room start-ups” driven by sweat equity are the ones being negatively impacted by the SEC’s approach. He urged Congress to modify the exemptions available to this technology, so that registration is clear and allows for the growth of the industry.
Former SEC chief responds to Mark Cuban
Former SEC chief Lisa Stark claimed the argument that there is a lack of regulatory clarity is irrelevant, citing comments made by Judge Amy Jackson in the case. She said, “SEC registration is difficult to say the least but tough financial regulation makes for a safer/more trustworthy marketplace. The crypto verse has just operated in an unregulated space for too long and likes it that way.”
However, Stark did agree with Cuban on the barriers to entry for startups, acknowledging the need to address onerous, burdensome, and unreasonable regulation. Mark Cuban has invested in numerous high-profile crypto projects, including the multichain wallet Blocto and the NFT utility project AlchemyNFT.