Billionaire Mark Cuban enters into a debate with a former lawyer SEC John Reed Stark, stating that the regulator is “throwing cryptocurrency under the bus”.
John. I think you are misreading the impact of what the judge said. It’s not related to this suit.
Not all crypto businesses that have tokens or are considering using tokens are large “enterprises”. Which is the assumption, I believe you are making. (Correct me if I’m wrong…
— Mark Cuban (@mcuban) June 14, 2023
June 14 Stark published a post on the case of the Commission v. Binance. He analyzed the transcript of the last hearing and shared his opinion about what was happening.
The lawyer expressed support for the SEC, noting the industry’s regulatory failure. In his opinion, the litigation will help to eliminate “intruders” and increase transparency.
In response, Cuban said that the ex-employee of the department misinterpreted the words of the judge, and the head of the SEC, Gary Gensler, was sabotaging the entire crypto market.
“These kinds of complex legal and financial issues are better dealt with through regulation or rule making than through litigation, but I don’t run the executive branch.” stated Judge Amy Jackson during one of the hearings.
Reed Stark argued that regulators should treat cryptocurrency-related companies as “large enterprises”. But the billionaire said otherwise. In his opinion, most crypto startups are small teams that do not have funds for a “securities lawyer.”
After the discussion turned to the question of the most appropriate regulation of digital assets. The lawyer insisted that cryptocurrencies should not “equate to shares or pink sheets“.
Cuban called Reed Stark’s position biased. He suggested that tokens could be treated in the same way as other securities, but for this, the SEC should formulate clearer rules.
The businessman admitted that, like all the first Internet companies, “90% of blockchain projects” and “99% of tokens” will go bankrupt.
“Those who win will change the rules of the game. This is how technology works,” he said.
Cuban also talked about “cryptopsychiatric disorder syndrome,” which is his term for an irrational dislike of digital assets and blockchain. He also noted the emergence of “crypto-maximalism” due to excessive PR.
Recall that John Reed Stark predicted a long struggle between crypto exchanges and the SEC. He urged clients of the trading platforms to “stop using them now.”
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