Famous billionaire Mark Cuban thinks the US Securities and Exchange Commission (SEC) could have prevented the FTX-related crypto collapse in late 2022.
The Shark Tank star say Japan has learned from the infamous Mt. Gox hack from 2014 and implemented regulations protect investors.
“If the SEC had taken the same approach as Japan, there would not have been an FTX problem. Japan FTX has not suffered any losses because they have actually learned and developed an approach that puts investors first and does not involve personal political gain.”
Cuban argues that FTX and other collapsed crypto companies would not have failed if the SEC had succeeded in establishing controlled collateral and segregation requirements for funds. Him too argues that other financial sectors entail more risk for investors.
“Which of the companies not listed on US stock exchanges, do you know, the 12,000 on the pink sheets/OTC (over the counter) ‘registered’ via changed requirements in 2021 will be groundbreaking and revolutionary?
Which have caused bigger losses for speculators over the past decade: those penny stocks that trade billions of shares in bankrupt companies or crypto tokens?
Even the most crooked of the crooks haven’t lost that much money. My point is not to say that the scam tokens should not be regulated outside of trading. They should. My point is that the SEC is really bad at protecting investors from scams.”
The billionaire too contours why he believes in the usefulness of crypto.
“For crypto: lower costs of capital transfers; instant loans with collateral; store of value, tokenization of assets; application and retention of royalties on digital assets such as books; real-time, low-cost insurance markets; Ownership of key assets in cold storage to protect against theft.”
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