Mark Cuban criticizes SEC chairman: ‘Gensler did not protect investors against fraud’

Billionaire Mark Cuban, known for his outspoken opinions and investment acumen, recently criticized Securities and Exchange Commission (SEC) Chairman Gary Gensler. In a recent post on his official X account, Cuban responded to the crypto courtship of former US president and 2024 presidential candidate Donald Trump.

In his post, Cuban argued that the cryptocurrency industry will play an important role in the 2024 US elections. “If Joe Biden loses, there’s a good chance you’ll be thanking Gary Gensler and the SEC,” Cuban wrote on May 10 . “Crypto is a mainstay among younger, independent voters.”

In his critical comments, the billionaire condemned the actions of the SEC president, highlighting that Gensler did not protect investors against fraud in the sector.

“Gensler DID NOT PROTECT A SINGLE INVESTOR AGAINST FRAUD. All he did was make it nearly impossible for legitimate crypto companies to operate, killing who knows how many companies and ruining who knows how many entrepreneurs. This is also a warning to Congress. Crypto voters will be heard in this election. You could solve this problem for Biden by passing legislation that sets specific registration for the crypto industry, just as other industries have registration defined for them. Or you could make the best option and assign all cryptocurrencies to be regulated by the CFTC”, he added.

If @joebiden loses, there is a good chance you will be able to thank @GaryGensler and the @NewYork_SEC
Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD

All he has done is make it nearly impossible for… https://t.co/uBKupxLhS9

— Mark Cuban (@mcuban) May 10, 2024

SEC’s Gary Gensler avoids talking about Ethereum’s status as a security

In a recent interview on CNBC, United States Securities and Exchange Commission (SEC) Chairman Gary Gensler chose not to directly categorize Ethereum as a commodity or security. Instead, Gensler highlighted the importance of protecting American investors and addressed the conduct of intermediaries in the crypto space.

“What I can say is that my central concern is: how can we protect the American investor? Currently, they are not receiving the information that is properly required,” said Gensler when answering a question from Andrew Ross Sorkin on the “Squawk Box” program.

Gensler continued to criticize the current structure of the cryptocurrency market, comparing it to practices prohibited in more traditional markets: “And the intermediaries, who are at the heart of this centralized market, often operate in conflict, doing things that we would never allow the Exchange to do. New York Stock Exchange did, how to trade against investors.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.