Mark Cuban, billionaire investor and tech entrepreneur, calls out the SEC for playing roulette with crypto startups’ futures. He says the financial watchdog’s current stance on crypto is leaving pioneering entrepreneurs hung out to dry.
Accusing the SEC of a scattergun approach towards regulations, Cuban pleads for clearer directives, especially for Web3 startups. He proposes a streamlined registration system for tokens and exchanges, bringing a win-win situation for both newbie ventures and industry titans, along with an assurance of investor safety.
Calling out the SEC and its chairman, Gary Gensler, Cuban said via Twitter, “When I and others ask for bright line guidance and oppose ‘regulation via litigation,’ the businesses I see that are thrown under the bus by the SEC and Gary Gensler are the dorm room start ups that are driven by sweat equity.”
Cuban lobbies for Congressional action, suggesting adjustments to available tech exemptions to make registration transparent and feasible for exchanges. These adjustments should cater to investor safety and industry growth, two elements he insists aren’t mutually exclusive. The entrepreneur opines that the SEC should abstain from passing verdicts on the validity of various technologies.
Joining this Twitter debate was John Reed Stark, former Chief of the SEC Office of Internet Enforcement. Stark argued that the cry for regulatory clarity is a red herring and cited Judge Amy Jackson’s remarks to support his argument. Stark, however, conceded that current barriers to entry are too high for startups, agreeing with Cuban’s view on excessive and unreasonable regulations.”