Billionaire Mark Cuban believes that SEC could save American customers from FTX if it adopted the Japanese approach to regulating cryptocurrencies. The ex-lawyer of the department, John Reed Stark, disagreed with him.
“When FTX collapsed, no one at FTX Japan lost money,” the businessman wrote.
Stark retorted, stating “stretched accusations”. He acknowledged some of the SEC’s mistakes, but stressed that the regulator saved investors “millions, possibly even billions of dollars” in losses.
The lawyer compared the collapse of FTX, BlockFi, Celsius, Terra, and Voyager to “garbage bin fires.”
The former agency official also noted that the crypto industry is seeking regulatory clarity. However, when the authorities propose new rules, the community resents and resists.
In response, Cuban said the best way to prevent digital asset fraud is to implement “clear investor protection rules.”
“Anyone who does not register [в SEC], de facto violates the rules, cannot work and will be closed. This is how the regulator protects depositors,” the entrepreneur believes.
In turn, Stark noted that the Commission charged Binance, Coinbase, Beaxy and Bittrex only a few months after informing them of non-compliance. In his opinion, the companies made a decision to “ignore the SEC and profit as long as possible without registering.”
This isn’t the first time Cuban and Stark have gotten into a regulatory controversy. In June, the billionaire accused the ex-official of bias, saying that the SEC was “throwing cryptocurrency under the bus.”
Recall that John Reed Stark predicted a long struggle between crypto exchanges and the department. He urged clients of the trading platforms to “stop using them now.”
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