On the All In podcast, Mark Cuban shared his personal experience of how his company lazy.com tried to launch its own token. The entrepreneur found the process to be prohibitively expensive and too complicated.
According to Cuban, crypto companies with limited revenue are unable to comply with current regulatory rules in the US. The SEC is making it harder for industry firms to register while insisting on compliance. This approach hinders the growth of the crypto industry, Cuban was indignant.
The billionaire explained that if the SEC regulated cryptocurrencies the way Japan does, then the FTX crypto exchange and many crypto lenders like Three Arrows Capital would have avoided bankruptcy.
Cuban criticized the agency for “regulating through litigation,” as the SEC creates more confusion and stifles innovation in the country, forcing crypto companies to move to other, more loyal countries.
“If, for example, FTX wants to give out all its ether for loans, it could be done by analogy with Japan – you must have 95% of the collateral, and 95% of the assets must be in cold storage. If Gary Gensler had set the same rules for cryptocurrencies as Japan, FTX would still be in operation. Its founder, Sam Bankman-Fried, could be in jail, but FTX and Three Arrows Capital would continue to operate even if he did wrong,” Cuban explained.
Cuban recently spoke out against memcoins, calling them sophisticated “rug pull” schemes. At the same time, the billionaire noted that the value of meme tokens lies in their entertaining nature.
Source: Bits
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