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The billionaire investor, Mark Cuban has called out SEC Chair Gary Gensler’s recent Twitter burst out against cryptocurrencies. Mark Cuban has mocked the SEC’s inability to create a fair and clear framework for digital assets and cryptocurrencies law.
How about making the lines bright and clear so people know what the rules are? The problem isn't that people are looking for grey areas, it's that there rarely are defined rules. Regulation through litigation traps all the people who can't afford a lawyer, accountant or advisor. https://t.co/kvEZOrog0k
— Mark Cuban (@mcuban) August 23, 2021
He further pointed out the core of the problem does not lie in the grey areas of the decentralized system; in fact, it is embedded in the unclear boundaries defined by the Securities and Exchange Commission. Additionally, Cuban highlighted the problematic process of “regulation through litigation”, which “traps all the people who can’t afford a lawyer, accountant or advisor”.
Ask any retail investor to define insider trading, your lawyers rarely agree, how can they know ? Why won't the SEC honor the right to a jury trial ?
"The risk doesn't leave the system" is your best line Gary. The risk in dealing with the SEC, is always because of your system. https://t.co/JBFQxXnF5d
— Mark Cuban (@mcuban) August 23, 2021
Gary Gensler’s Twitter burst out
Gary Gensler’s strong stance against cryptocurrencies in the US is not unknown to the crypto community. He has received substantial backlash for his recent tweets adhering to the legal insecurity of the crypto sphere. He emphasized that it is unwise to invest in a sphere that is prone to consistent litigation. Furthermore, he supported SEC’s unfair and harsh techniques of litigation to enforce the poorly structured framework around crypto regulations in the US.
“If someone asks a lawyer, accountant, or adviser if something is over the line, maybe it’s time to step back from the line. Going right up to the edge of a rule or searching for some ambiguity in the text or a footnote may not be consistent w/ the law & its purpose”, Gensler tweeted.
Gensler argued that the SEC enforcement regime is in favor of investors’ protection. The law enforcement process will apply to deceiving conduct by private funds, offering or accounting frauds, insider trading, and market manipulation. SEC Chief further adds that even the inability to meet with retail customers’ best interests, along with failure to report violations, anything less of perfect execution, and fiduciary violations, all will righteously fall under scrutiny by the SEC.
The spirit of the law is about protecting investors. Our rigorous enforcement regime @SECGov is about following the facts and the law, wherever they may lead, on behalf of investors and working families. (2/4
— Gary Gensler (@GaryGensler) August 23, 2021
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