Mark Cuban Says “Crypto Regulations Are Necessary”

KEYPOINTS

  • Crypto regulation based on recent fraud laws, according to Mark Cuban, isn’t always a bad thing.
  • The SEC is working overtime to develop a set of rules for crypto markets to protect investors.
  • Cuban also projected which areas he believes would become increasingly regulated.

The topic of additional crypto regulation has gotten a lot of attention recently, and on Tuesday, Gary Gensler, chairman of the Securities and Exchange Commission, told the Senate Banking Committee.

The SEC is working overtime to develop a set of rules for crypto markets to protect investors, among other things.

Both the crypto community and its opponents have responded with their own perspectives. Mark Cuban, a wealthy investor, is one of those speaking out.

On Thursday, Mark Cuban posted a thread on Twitter,

“Personally, I think regulation built around existing fraud laws is not a bad thing. It will require Proof of Authorship and identity, but it won’t hurt innovation, nor slow anything down.”

Instead, regulation will “open the door for more people to confidently use ‘crypto.ʼ”

Cuban admitted that requiring proof of authorship would diminish the anonymity that some in the crypto world appreciate, but he believes that the benefits would exceed the drawbacks.

If you require Proof of Authorship for Smart Contracts and Tokenomics the feds and victims will have a person/entity to sue or indict. Probably at the cost of anonymous innovators, but that’s the price that will be paid.— CUban Tweeted

According to his present understanding of the crypto world, Cuban also projected which areas he believes would become increasingly regulated.

For one thing, he believes stablecoins, or cryptocurrencies that are designed to be anchored to reserve assets such as fiat currency, will be the “The first to get regulated.”

Stablecoin legislation has already been hinted at by Gensler and the SEC, with politicians concerned that stablecoins pose a threat to financial stability.

Stablecoins have also been criticised by Federal Reserve Chair Jerome Powell, who sees them as hazardous and vulnerable to fraud.

Further he wrote, “Any discussion of crypto regulation has to start with the facts that there are already laws against fraud and that “crypto” is not monolithic. There are many layers to “crypto” here are my thoughts and all are subject to change as I learn more.”

Cuban has a sizable cryptocurrency holdings. He has not only purchased cryptocurrencies such as bitcoin, ether, dogecoin, and other altcoins, but he has also made investments in a number of blockchain startups.

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IMAGE CREDITS : Getty Images, CNBC

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