Mark Cuban rebukes the US Securities and Exchange Commission (SEC) over its second-rate handling of crypto regulations.
He believes the SEC and Biden administration should take their cues from Japan about how to implement crypto regulations effectively.
Mark Cuban is an entrepreneur, investor, author, and a television personality on the American series Shark Tank.
He occupies 581 spot on the Forbes Rich list with a net worth of 5.4 billion (2024).
“He believes the SEC and Biden administration should take their cues from Japan about how to implement crypto regulations effectively”
WEALTH TRAINING COMPANY
Mark Cuban rebukes SEC over crypto regulations for failing to learn from past failures
A long-time supporter of digital assets since its early days, Mark Cuban lashed out at the SEC, saying that Japan learned from the MT Gox bankruptcy, a crypto exchange based in Tokyo that suspended trading in 2014.
MT Gox crypto exchange was known for its huge losses following a wave of hacks between 2011 and 2014.
“Japan famously learned from Mt Gox and renovated their regulations so that when the largest failures in crypto history happened, they didn’t hurt Japanese stakeholders,” Mark Cuban added in an X posting in May 2024, the SEC didn’t learn shit. Not a damn thing when MT Gox happened,” he wrote.
“Japan famously learned from Mt Gox and renovated their regulations so that when the largest failures in crypto history happened, they didn’t hurt Japanese stakeholders”
MARK CUBAN
Mark Cuban rebukes the SEC process of crypto registration without mincing his words
“They (the SEC) are still so stupid they think the mere process of registration protects investors. The only actions they take are after the fact. See Madoff. See FTX. See Chinese Stocks In Japan if and when a breakthrough or ubiquitous application happens, they will benefit from it. They will give entrepreneurs that opportunity. That’s how innovation happens. The opportunity is created. If I knew the exact breakthrough app, I would create it,” added Mark Cuban.
Mark Cuban thinks the SEC is doing a poor job because it is not doing what it should do to protect the integrity of markets and, on other matters, over-regulates starving capital flows for technological innovation.
“It is no coincidence that the SPAC boom, touted by the mainstream as a clever way for investors to get in early on a new listing company with good prospects, coincided with massive monetary easing during the lockdowns”
– Wealth Training Company
How many regular Joe investors have been burnt by the Special Purpose Acquisition Company (SPAC)? The great SPAC con, also known as the blank cheque company, facilitates private companies to go public without going through the initial public offering process, which often carries significant procedural and regulatory burdens.
SPACs con would make a great case study on how crony capitalism and monetary easing policy walk lockstep with regulators to enrich the club at the expense of the many.
Monetary easing creating copious amounts of currency is a movable feast for those privileged few sitting at the table nearest the source of the currency creation.
The apex of the human food chain in this type of crony capitalist system acquires assets for literally nothing.
As the currency filters down the human food chain, Joe Public is left with a string of inflated assets while the club exits at the top, leaving Joe Public holding the bag.
Meanwhile, the impoverished many, at the bottom of the human food chain, 90 per cent of the population, are left with inflation as they increasingly struggle to survive on falling wages and government handouts. The struggling many counting their pennies at the checkout counter to pay for staples is a common sight in 2024.
Policy-driven, trickle-up wealth effect is how billionaires are gaining roughly $1.7 million for every $1 of new global wealth earned by a person in the bottom 90 per cent.
It has the makings of neo-feudalism, a superwealth class of oligarchs and their serfs.
It is no coincidence that the SPAC boom, touted by the mainstream as a clever way for investors to get in early on a new listing company with good prospects, coincided with massive monetary easing during the lockdowns.
But the reality was far different.
Vanda Research found that retail investors lost $4.8 billion, or 23%, of the aggregate $21.3 billion they ploughed into SPACs from the beginning of 2020 to the first week of April 2022.
“Which have generated more losses for speculators over the last 10 years, those penny stocks that trade billions of shares in bankrupt companies or crypto tokens?” – Mark Cuban
Mark Cuban rebukes SEC regulations as investors got conned in the SPACs mania while Wall Street made a killing as the SEC looked the other way
Mark Cuban also criticised the SEC’s approach to innovation, stating that it is “completely the opposite of our technology history in the USA.”
He also further questioned the SEC’s ability to protect investors from scams, suggesting that the regulatory body is poor at doing it.
Indeed, where was the SEC when the system flowed with new Fed central bank currency during the 2020 lockdowns?
The system flush with cash, the regulators, if they were doing their job well, should have been extra vigilant for scams to protect investors.
Mark Cuban responded to a post by Mike Kelly, which questioned the potential of 65 tokens in Japan to be breakthrough applications. Mark Cuban pointed out that even the “scammiest of the scammiest tokens” haven’t caused as much loss as other investments.
“Which have generated more losses for speculators over the last 10 years, those penny stocks that trade billions of shares in bankrupt companies or crypto tokens?,” he wrote.
Cuban applauded the Japanese regulatory environment, which he believes fosters innovation by providing entrepreneurs with opportunities to profit on breakthrough technologies.
Mark Cuban lamented the SEC’s failure to create a conducive environment for innovation, contrasting it with the history of technological advancements in the US.
Ethereum ETC, the network driving blockchain technology, is still waiting for the SEC to approve an ETF for ether.
