Wealthy investor and former SEC employee John Reed Stark is embroiled in a controversial argument about cryptocurrency regulation.
Crypto This morning, a heated argument erupted on Twitter between billionaire investor Mark Cuban and SEC’s Gary Gensler, with Cuban accusing Gensler of demonizing cryptocurrencies. A former SEC employee was quick to defend Gensler.
On June 14, John Reed Stark, a former SEC official, and Cuban engaged in a heated Twitter conversation in which Stark appeared to defend the SEC’s latest legal action against the largest cryptocurrency exchange, Binance.
Cuban accused Stark of misreading the implications of the case and praised SEC Chairman Gary Gensler’s “regulation through litigation” strategy for killing cryptocurrency businesses.
Prior to this, Stark had advocated that regulators should view crypto-related organizations as “big corporations”. Cuban disagreed, stating that many crypto businesses are small and should not be instructed to “hire a securities attorney” to enter the market.
Stark reiterated his support for the SEC’s efforts against Binance, pointing out that the sector remains largely unregulated and that such action will weed out “bad actors” and increase transparency.
The topic then turns to how best to regulate cryptocurrencies, with Stark arguing that they should not be handled as “pink sheets or stocks”.
Cuban, on the other hand, criticized Stark’s position as biased and argued that the SEC should create more precise rules for tokens so they can be governed similarly to conventional securities.
Famous American entrepreneur and investor Mark Cuban. When he stated Bitcoin ticker BTC fell $25,577 to nothing more than a pyramid scheme in 2017, he was first involved with cryptocurrencies. Over time, Cuban has shown increasing support for digital assets and now appears to be a stalwart of the industry.
Prior to becoming chief, John Reed Stark oversaw the SEC’s Office of Internet Enforcement. These days, Stark is quite skeptical of cryptocurrencies and tweets out to his 21,000 followers various legal opinions on digital assets.
Ultimately, Cuban admits that, like all early internet startups, “90 percent blockchain companies” and “99 percent tokens” are doomed to failure. Those who succeed “will be game changers”. That’s how technology works, he says.
Cuban concluded by supporting cryptocurrencies and asserting that no one can deny their potential impact on the larger economy.
He claims that those with an irrational hatred of cryptocurrencies suffer from “Crypto Derangement Syndrome”, which he calls the opposite of those who overestimate their potential.
“With all due respect, crypto maxis overhyping crypto is as big a problem as Crypto Derangement Syndrome.”
Post Crypto derangement syndrome’ and the SEC are three issues first discussed by Mark Cuban at BTC Wires.