Billionaire Investor Mark Cuban Argues Crypto Regulation With Former SEC’s Official John Reed Stark

The crypto community witnessed intense arguments recently between the popular billionaire investor Mark Cuban and the SEC’s former official John Reed Stark on Twitter. 

Cuban maintained that crypto is now under the bus due to the regulatory actions of the SEC’s Chair Gary Gensler. However, Stark gave a strong defense for the commission and its enforcement actions on the crypto industry.

Debate On SEC’s Legal Actions Against Crypto Firms

The debate between the duo started on June 14, with Stark tweeting about people’s reactions regarding the SEC vs. Binance lawsuit.  Stark stated that many called on the judge’s position as being skeptical over the SEC’s enforcement action in regulations.

On his part, Cuban stated that Stark is being defensive over the recent legal battle the SEC initiated against Binance, the largest global crypto exchange.

The billionaire investor mentioned that Stark is misinterpreting the implication of the case on the entire digital assets space. He criticized SEC Chair Gensler for his over-the-edge approach to digital asset regulations.  

Cuban stated that Gensler is sabotaging crypto startups by using ligations on crypto-related firms and protocols. In his earlier argument, Stark mentioned that regulators should treat crypto companies as ‘large enterprises. 

However, Cuban countered such an opinion, stating that several crypto businesses are still small. So, they should not be compelled to hire securities lawyers before they can kick off operations in the industry.

Further, Stark reaffirmed his support for the SEC’s legal move against Binance. The former SEC official maintained that the digital assets industry is vast and unregulated. 

He noted the regulatory moves from the commission are the surest approach in sieving bad actors and om promoting transparency in the industry.

Best Approach For Crypto Regulations

On another line of thought, the debate shifted to the best approach for digital currency regulations. Stark believed that digital assets should be handled as pink sheets or stocks.

Cuban brought a different opinion, mentioning that crypto tokens could be treated like securities. But the investor suggested that the SEC provide more clarity on its asset guidelines.

The billionaire investor believed the crypto space would be like all the early-internet firms while linking the tech world. 

He mentioned that 90% of blockchain firms and 99% of digital tokens might disappear. In his terms, those that will survive are the game changers, replicating tech functionalities.

Finally, Cuban expressed his support for crypto, stressing that nobody could display the possible positive impact of digital assets in promoting the global economy.

Notably, Mark Cuban is a popular American entrepreneur and investor. In 2017, Cuban made his first leap into digital currency by putting Bitcoin as a high pyramid scheme. Subsequently, the investor now supports the crypto industry.