In response to the recent crackdowns on cryptocurrency by the US Securities and Exchange Commission, Mark Cuban has highlighted some recommendations for the Commission to implement.
Mark Cuban is a renowned American entrepreneur, billionaire investor, television personality, and owner of the Dallas Mavericks. He co-founded Broadcast.com, which was later sold to Yahoo! for $5.7 billion.
With investments in companies like TheStreet.com, AXS TV, and Magnolia Pictures, he has established himself as a prominent figure in the business world. Many also recognize him from his appearances on the popular television show “Shark Tank,” where he invests in new businesses.
The tech billionaire argued that the SEC should shift its focus from evaluating the reliability of blockchain technology and determining investor safety in the crypto space.
Instead, he suggested that the SEC should assist startups in scaling their growth. According to him, if the SEC truly operates based on principles, it should find ways to facilitate funding and support for startups.
Instead, the SEC has filed a series of suits against Binance and Coinbase, highlighting the lack of services provided to secure investors’ investments.
Clarity by SEC
The next recommendation he made was for the SEC to provide a clear regulatory framework. He pointed out that the current state of the crypto market, with multiple projects collapsing, mirrors what occurred during the dot-com era in the US. Just as numerous companies collapsed back then, it is predicted that a similar fate awaits the cryptocurrency market.
According to him, “90% of blockchain companies will go broke, just like 99 percent of early internet companies did. Additionally, 99% of tokens will face the same fate. Furthermore, 99% of startup companies leveraging LLMs will disappear.”
He also pointed out that Congress took steps to address the challenges faced by failing companies in the Internet era by introducing exemptions. Therefore, he emphasized that it is now time for Congress to once again respond and adjust the available exemptions for this technology.
The goal is to make registration more transparent and create a feasible path for exchanges that both protect investors and foster industry growth.
Crypto will have winners
Mark made a noteworthy observation: while some crypto firms will fail, there will also be those that succeed. And those successful ones, according to him, “will be game changers.”
Additionally, he addressed the criticisms against crypto, acknowledging their validity, but emphasizing that these criticisms do not diminish the potential impact the industry can have on the economy. Mark highlighted the transformative utility of smart contracts, which serve a highly useful purpose.