Mark Cuban Says Crypto Regulation Won’t Be a Bad Thing

Mark Cuban Says Crypto Regulation Won't Be a Bad Thing

The subject of additional regulation in the crypto space has been heavily debated lately, and on Tuesday, Securities and Exchange Commission Chairman Gary Gensler told the Senate Banking Committee that the SEC was working overtime to create a set of rules for the crypto markets. do its job. Among other things, to protect investors.

In response, the crypto community and its critics shared their views. Among those who spoke was billionaire investor Mark Cuban.

“Personally, I think the regulations built around existing fraud laws are not a bad thing,” Cuban said. tweeted In a thread on Thursday. “It will require proof of authorship and identity, but it will not hurt innovation, nor slow anything down. “

Instead, the settlement “will open the door for more people to confidently use ‘crypto’,” Cuban tweeted.

Cuba has acknowledged that some form of proof of paternity would remove the anonymity that some prefer to maintain in the crypto community, but in the end, it believes such a fatality would outweigh the good.

“If you need proof of paternity for smart contracts… [potential fraud] Victims will have a person / entity to prosecute or prosecute, ”he said. “Maybe at the expense of anonymous innovators, but that’s the price that will be paid.” (Smart contracts are collections of code that come with a set of instructions. The blockchain completes the set.)

Based on its current understanding of the crypto space, Cuba also predicted which sectors it believes would be increasingly regulated.

On the one hand, he believes that stablecoins, or cryptocurrencies, which are supposed to reserve assets like fiat money, will be “the first to be regulated.”

“Why? Definitions vary by product. What is a peg? What is an algorithmic stablecoin? Is it stable? Do buyers understand what the risks are? Standards need “, did he declare.

Gensler and the SEC have also previously hinted at plans to regulate stablecoins, with lawmakers concerned that stablecoins pose a potential threat to financial stability. Federal Reserve Chairman Jerome Powell has also warned against stablecoins, seeing them as risky and susceptible to fraud.

Still, “any discussion of crypto regulation must begin with the fact that there are already laws against fraud and that ‘crypto’ is not monolithic,” Cuban said. “Crypto ‘has many layers.”

Cuba itself has a large cryptocurrency portfolio. Not only did he buy cryptocurrencies like Bitcoin, Ether, Dogecoin, and other altcoins, but he also invested in several blockchain companies.

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