Movie star billionaire Mark Cuban thinks the U.S. Securities and Change Fee (SEC) may’ve prevented the FTX-related crypto collapse in late 2022.
The Shark Tank star says Japan discovered from the notorious 2014 Mt. Gox hack and applied rules to protect investors.
“If the SEC had taken the identical method as Japan, there wouldn’t have been an FTX difficulty. Japan FTX didn’t have losses, as a result of they really discovered and put collectively an method that put buyers first and private political acquire didn’t come into play.”
Cuban argues that FTX and different collapsed crypto companies wouldn’t have failed if the SEC had managed to institute audited collateral and segregation of funds necessities. He additionally argues that different monetary sectors current extra danger to buyers.
“Which of any of the businesses not listed on USA exchanges, you recognize the 12,000 on the pink sheets/OTC (over-the-counter) which might be ‘registered’ by way of modified necessities in 2021, are going to be groundbreaking and revolutionary?
Which have generated higher losses for speculators over the past 10 years, these penny shares that commerce billions of shares in bankrupt firms or crypto tokens?
Even the scammiest of the scammiest tokens haven’t misplaced as a lot cash. My level isn’t to say the rip-off tokens shouldn’t be regulated out of enterprise. They need to. My level is that the SEC is actually, actually dangerous at defending buyers from scams.”
The billionaire additionally outlines why he believes in crypto’s utility.
“For crypto: decrease value of capital transfers; rapid collateralized loans; retailer of worth, tokenization of belongings; software and retention of royalties to digital belongings like books; real-time, low-cost insurance coverage markets; chilly storage possession of great belongings to guard in opposition to theft.”
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