Billionaire Mark Cuban Supports Former SEC Chief Against Gary Gensler on Crypto

Mon, 06/12/2023 - 15:13
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Mark Cuban, billionaire, Shark Tank co-host and owner of the Dallas Mavericks basketball team, has taken to Twitter to retweet an article about former SEC cyber chief Robert Cohen criticizing current SEC chair Gary Gensler for his actions against crypto companies.

Cuban comments on Cohen's words about SEC and crypto

Thus Cuban has confirmed his support for crypto and called for clear crypto regulations to be implemented in the U.S. as the country has begun to lose many crypto exchanges due to the SEC's recent actions.

The article shared by Cuban is based on an interview of Cohen with crypto podcaster Laura Shin, which took place after last week, when the SEC pressed charges against major U.S.-based exchanges Coinbase and Binance.US for, allegedly, breaking U.S. law on securities.

Gensler keeps calling many cryptos unregistered securities; however, he refuses to comment on the status of many other cryptos, such as Ethereum. This is puzzling the crypto community, which is angry about the SEC chair and the regulatory policy against crypto.

Cohen admitted that there seems to be an "element of bad luck and randomness" when it comes to the SEC picking on a new token to call a security. He states that while 10 or 12 tokens get mentioned, a hundred others may as well have also been claimed to be securities. He believes that this randomness coming from the regulator is "rather unfair."

Cohen believes that these actions by the SEC are affecting not only businesses but also real people who are involved with them. "It's having a real impact on real people and real businesses," he stated.

According to him, "the SEC's actions are raising a cloud of suspicion where one may not be warranted." Still, he commented that when the regulator calls a token a security, this implies that "something wrong happened" to it. Cohen believes that the SEC may never come up with the final rule as to what can be classified as a security and what cannot.

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Cuban debates with CryptoLaw founder on crypto regulations

As covered by U.Today over the weekend, Mark Cuban got himself engaged in a discussion with pro-Ripple lawyer and founder of CryptoLaw John Deaton, about how the SEC could decide whether a token is a security or not.

Cuban suggested a way that secondary sales of cryptos could be put to test: will the token survive if the company that produces it shuts down? "That, by definition, ends the Howey test application."