Mark Cuban condemns the SEC’s approaches to regulating cryptocurrencies

Billionaire Mark Cuban criticised SEC Chairman Gary Gensler for vague rules for Bitcoin entrepreneurs and investors.

Cuban’s tweets were a response to a recent Wall Street Journal article by Gensler, in which he pointed to the need to regulate the cryptocurrency market in analogy with traditional finance.

“The SEC will act as a policeman. We must ensure standard investor protection in the bitcoin market,” wrote the head of the SEC.

Cuban asked Gensler to clarify the format in which firms should communicate with the regulator.

“Who should they talk to and how to set up a meeting? Since you understand crypto lending and finance, why not simply publish clear guidelines you would like to see and open them for comments?”, wrote the billionaire.

In his article Gary Gensler, among other things, mentioned the situation with the lending platform BlockFi, which is to pay $100 million to settle claims by the SEC and other financial regulators.

According to the head of the agency, BlockFi failed to register high-yield interest accounts as securities and did not provide investors with the relevant information.

“I urge platforms offering crypto lending to come and talk to SEC staff. Bringing these platforms into compliance with securities laws will benefit investors and the cryptocurrency market,” added Gensler.

Last year on Twitter, the regulator’s head had already written that “the agency’s strict enforcement regime is about following the facts and the law wherever they lead”.

Cuban also criticised this approach:

“If you act on behalf of investors, you should help them ask questions and answer them. Yet you, on the contrary, make such dialogue practically impossible. And you leave no chance for those who cannot afford legal services.”

Earlier Mark Cuban called the ‘silliest’ idea of acquiring land, mansions and other real estate in virtual worlds.

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