Mark Cuban says SEC is to blame for FTX bankruptcy

Billionaire and crypto advocate Mark Cuban has opened up a new debate about crypto laws in the US. He blamed the SEC regulator for the bankruptcy of FTX. And also in the catastrophic losses of American investors.

Cuban believes that if the SEC had introduced clear rules in a timely manner, then the crypto exchange would not have been able to make the mistakes that led to its collapse. And even in the event of bankruptcy, customers would be more protected.

The businessman cites Japan as an example. Due to competent regulation, the local division of FTX JAPAN was practically not affected.

Cuban summed up that the SEC’s failure to engage in the crypto industry cost Americans “billions of lost funds.”

You should read up on how Japan deals with regulation. https://t.co/yHCVwZAqvG

When FTX crashed, NO ONE IN FTX JAPAN LOST MONEY.

If the USA/SEC had followed their example by setting clear regulations that required the separation of customer and business funds and clear… https://t.co/Msvn9o9PCU

— Mark Cuban (@mcuban) June 4, 2023

This tweet was commented by John Reed Stark, former head of the securities department. He acknowledged that the SEC has flaws. But in doing so, the regulator “saved investors millions, perhaps even billions, of losses in cryptocurrencies.”

Stark noted that the American crypto industry is actively protesting against any attempts to introduce new regulation rules. What can not be said about Japan – there are strict rules, and business is ready to work according to them.

That is worth studying Mark, thanks.

The laws in Japan require crypto exchanges to register with authorities, to keep customer money separate from their own accounts, to hold at least 95% of customers’ digital assets in a cold wallet and to entrust clients’ holdings of…

— John Reed Stark (@JohnReedStark) June 4, 2023

At the same time, Stark stated that “Cryptocurrency is not an innovation, but mathematical chatter, usually covered by cunning and marketing theatre.”