Billionaire celebrity investor Mark Cuban thinks the U.S. Securities and Exchange Commission (SEC) lawsuit against Coinbase highlights “the fundamental issue” with the regulator.
The owner of the Dallas Mavericks say the SEC could have “easily” gone to Coinbase and outlined a plan to help the major US crypto exchange comply with securities laws.
“If Coinbase or anyone else didn’t comply, they’ll sue about whatever legal disagreements they have. Instead, they’re doing what they told one of my companies when we called: “Read these cases and get a lawyer to look into it for you.”
That’s the SEC’s fundamental problem. They don’t want to help companies achieve compliance, they want to challenge them to achieve compliance.
They are full of lawyers. Lawyers want to litigate. If you had business people, more like the [Small Business Administration], there would be more compliance, fewer lawsuits, and better investor education and protection. But if that happened, 2,000 SEC attorneys would be out of work.”
Cuban argues that there are “thousands of financial scams on Twitter every minute” that the SEC is doing nothing about. The Shark Tank star too to ask whether the regulator is doing enough to protect investors from pink-sheet stocks traded over-the-counter (OTC).
Crypto prices crashed across the board on Monday after news broke that the SEC had filed a lawsuit against global crypto exchange Binance and its CEO Changpeng Zhao. The regulator alleges that the exchange was in violation of investor protection and securities laws.
The SEC followed up on the Binance lawsuit by suing Coinbase on Tuesday alleging the exchange operated as an unregistered stock exchange, broker, and clearing house.
Cuban also argues that the SEC could better protect investors from bad actors if the regulator forged closer ties with companies seeking compliance.
“As it stands, no one wants to talk to the SEC because no one trusts them for fear of being in the same situation as Coinbase. You get what you measure.”
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