My Crypto Lawyer
The cryptocurrency industry has taken multiple regulatory hits in the last two years. In 2024, particularly, the scrutiny intensified led mainly by the Securities and Exchange Commission (SEC) under Gary Gensler’s leadership. This approach has raised criticism among crypto enthusiasts like the renowned billionaire and investor Mark Cuban – from the “Shark Tank” television show.
In a scathing X (formerly Twitter) post on May 11, Mark Cuban accused the SEC and its chairman, Gary Gensler, of attempting to destroy the cryptocurrency industry. Cuban asserted that the SEC’s current approach makes it nearly impossible for companies to comply with registration rules.
The entrepreneur stated that he now rejects investment opportunities involving token releases due to the SEC’s recent behavior. Cuban emphasized that his decision is based not on the companies but on the SEC’s restrictive policies.
Mark Cuban believes the SEC is making it ‘impossible to comply’
Moreover, he argued that the SEC’s actions have created a prohibitively expensive and time-consuming process for companies seeking to operate legitimately. Cuban also expressed concern that companies attempting to operate outside the USA to avoid SEC regulations are not viable investment options for him.
The billionaire suggested that the SEC could easily remedy the situation by implementing measures to increase compliance and protect investors. He pointed out that the crypto industry is eager to find ways to register, comply, and reduce speculative noise.
However, Cuban claimed that the SEC’s current approach fails to distinguish between legitimate companies and “junk tokens,” leaving investors unable to differentiate. He directly blamed SEC Chairman Gary Gensler for creating a legacy that hinders good companies from doing the right thing.
“This is the legacy of Gary Gensler. He has made it impossible for good companies to do the right thing.”
– Mark Cuban
In conclusion, Cuban highlighted the small number of operating companies that have successfully registered their tokens with the SEC and continue to operate in the USA. His critique underscores the ongoing tensions between the cryptocurrency industry and regulatory bodies.
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