Mark Cuban Slams Gary Gensler for Making Crypto Regulations ‘So Difficult’: ‘If It Had Followed the Same Rules as Japan, FTX Would Still Be in Business’

Billionaire investor Marc Cuban expressed strong criticism against Gary GenslerChairman of the United States Securities and Exchange Commission (SEC), for crafting overly complex regulations for cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD and others. During an appearance on the All in podcastCuban argued that Gensler’s regulatory approach hinders the growth of the crypto industry.

What happened: Cuban highlighted the challenges small businesses face in complying with SEC regulations. He recounted his own experience with his business, lazy.com, where he attempted to release a token but found the process prohibitive and complicated. Cuban said the current regulatory framework is not feasible for businesses with limited revenues.

“What’s happening is Gary Gensler is making it very difficult to record, and what he should be doing is saying: here’s the bright line: regulation.”

Cuban explained that Gensler, with a simpler regulatory approach, similar to Japan’s, could have prevented the collapse of companies like FTX And Capital of the Three Arrows.

“If FTX wants to lend out all of its Ethereum, you have to do what they did in Japan: you have to have 95% collateral and 95% of everything has to be stored in cold storage. If it had followed the same crypto rules as Japan, FTX would still be in business. Free Sam Bankman might still be in prison, but FTX, the three-spired capital, would still be in business because he did the wrong thing,” Cuban explained.

The billionaire entrepreneur also criticized Gensler’s “regulation through litigation” method, suggesting it creates uncertainty and stifles innovation.

See also: Cryptocurrency Expert Predicts Significant Drops for Bitcoin and Ethereum Ahead of Altcoin Season Start

Cuban also expressed support for John Deatonwho challenges the US senator. Elizabeth Warrenciting Deaton’s pro-crypto stance and character as reasons for his endorsement.

Why it matters: Cuban criticism of Gensler is not new. In a recent interview, Cuban expressed interest in becoming the next chairman of the SEC, citing his dissatisfaction with Gensler’s leadership. Cuban called the SEC’s current policies “terrible” for business growth, especially in the crypto sector. His support for John Deaton further emphasizes his opposition to Elizabeth Warren‘s anti-crypto stance, which was supported by Gensler. Cuban expressed his belief that Warren’s approach could harm the industry by ignoring its potential benefits.

Read next:

Disclaimer: This content was partially produced with the assistance of Benzinga Neuro and was edited and published by Benzinga editors.

Image via Shutterstock