• Mark Cuban and former US Securities Exchange Commission official John Reed Stark argued over the cause of FTX collapse and how US customers could have been protected better.
• Cuban suggested that had the SEC adopted similar regulations as Japan, US customers wouldn’t have lost money in the FTX crash.
• Reed dismissed the creation of CBDCs as useless and risky to global finance, while also acknowledging that the SEC saved U.S customers “millions, perhaps even billions” in crypto losses.
Billionaire Mark Cuban And Ex SEC Official Argue Over FTX Collapse
American billionaire Mark Cuban and the former US Securities Exchange Commission (SEC) official John Reed Stark argued over what actually caused the collapse of FTX and how US customers could have been protected better. Shark Tank star Mark Cuban suggested in a tweet that had the US SEC adopted similar regulations as Japan, US customers wouldn’t have lost money in the FTX collapse.
John Reed Stark’s Thoughts on Crypto Regulations
Former SEC official John Reed Stark replied that blaming the SEC in such cases is a “bit of a stretch.” He tweeted that the crypto-ecosystem, which operates with no regulatory oversight, no consumer protections and no auditing, is not just unsafe and dangerous but also easily susceptible to fraud, grift and chicanery. Furthermore he dismissed the creation of Central Bank Digital Currencies (CBDCs) as useless and risky to global finance.
Mark Cuban Praises Japan for Crypto Regulations
In response to John’s views on crypto regulation, Mark Cuban praised Japan for correctly regulating cryptocurrency by setting clear regulations that require separation of customer and business funds with clear wallet requirements. He suggested if this was applied in America then no U.S customer would lose money due to these collapses like they did with FTX’s case.
John Reed Disagrees With Blaming The SEC
John disagreed with blaming The Sec for these collapses claiming it saves U.S customers millions or even billions from crypto losses due to its limited leeway in policing this anarchical financial industry with little regulation or protection against insider trading or market manipulation prohibitions . Though he admitted he has many negative things to say about them ,he does not believe they are completely at fault here .
Mark Cuban Suggests Alternative Regulatory Solutions
Mark suggested asking companies to register is not an effective way to stop frauds . Setting brightline investor protection regulations like those seen in Japan will be more effective , according to him . He believes this would protect U.S citizens from any future collapses like these .