Mark Cuban: blockchain project creators will have to give up anonymity under regulation

Regulation of the crypto industry within the existing legal framework is not necessarily bad; however blockchain project creators will have to give up anonymity. This view was expressed by Dallas Mavericks owner and billionaire Mark Cuban.

5. Personally I think regulation built around existing fraud laws is not a bad thing. It will require Proof of Authorship and identity but it won’t hurt innovation , nor slow anything down. It will open the door for more people to confidently use “crypto”. Thoughts ?

— Mark Cuban (@mcuban) September 16, 2021

“Personally I think regulation built around existing fraud laws is not a bad thing. [This approach] will require disclosure of identities [of project creators], but it will not harm innovation and will not slow them down. It will open the door to the cryptocurrency industry for a large number of people,” he wrote.

The billionaire explained that “the most probable sources of fraud” are smart contracts, which remain unclear to most users. In his view, developers will be required to conduct a certified audit of the codebase to prove absence of malicious intent.

2A. Which in turn means that the feds will not allow for anonymous SCs. Someone will need to take responsibility or it will be deemed illegal, which may prevent off shore contracts from being legal if they don’t register. Proof of Authorship and Identity could be a thing

— Mark Cuban (@mcuban) September 16, 2021

“This means that the federal authorities will not allow anonymous smart contracts. Someone will have to take responsibility, or it will be deemed illegal, which may hinder the legalisation of contracts if they are not registered. Identity disclosure may become a requirement,” Cuban added.

According to him, a similar situation exists in tokenomics. The billionaire stressed that the distribution and issuance of tokens, as well as processes associated with their circulation, are not always transparent, therefore project creators must also attest to authorship.

Cuban noted that the crypto industry is not monolithic, so you cannot lump all projects together. He also stated that stablecoins will be the first to come under regulation, as there is much ambiguity in terms surrounding them.

1. Stablecoins will be the first to get regulated. Why? The variance in the definition by product. What is a peg? What is an algorithmic stablecoin ? Is it stable? Do buyers understand what the risks are? It needs standards

— Mark Cuban (@mcuban) September 16, 2021

“What does pegged mean? What is an algorithmic stablecoin? Is it stable? Do users understand the risks? Standards are needed,” he explained.

Earlier, Cuban weighed in on the clash between the Bitcoin exchange Coinbase and the U.S. Securities and Exchange Commission. The billionaire urged Brian Armstrong’s company to engage in open legal confrontation with the regulator.

In June, Cuban was among those affected by the collapse of the DeFi-protocol IRON Finance.

Despite the incident, the billionaire has not changed his stance toward the decentralized finance sector.