Mark Cuban says crypto regulation wouldn’t be a bad thing

The topic of extra regulation within the crypto area has been particularly buzzy these days, and on Tuesday, Gary Gensler, chairman of the Securities and Trade Fee, advised the Senate Banking Committee that the SEC is working overtime to create a set of rules for crypto markets to guard buyers, amongst different issues.

In response, each the crypto group and its critics have shared their very own ideas. Amongst these talking up is billionaire investor Mark Cuban.

“Personally, I feel regulation constructed round current fraud legal guidelines shouldn’t be a foul factor,” Cuban tweeted in a thread on Thursday. “It can require Proof of Authorship and identification, nevertheless it will not harm innovation, nor gradual something down.”

As an alternative, regulation will “open the door for extra folks to confidently use ‘crypto,'” Cuban tweeted.

Cuban acknowledged {that a} type of proof of authorship would take away the anonymity some favor to take care of within the crypto group, however finally, he thinks the nice of mandating such a factor would outweigh the unhealthy.

“In case you require Proof of Authorship for Smart Contracts … the feds and [potential fraud] victims can have an individual/entity to sue or indict,” he mentioned. “In all probability at the price of nameless innovators, however that is the worth that might be paid.” (Sensible contracts are collections of code that perform a set of directions on the blockchain.)

Cuban additionally predicted which areas he thinks might be more and more regulated, in accordance with his present understanding of the crypto area.

For one, he thinks that stablecoins, or cryptocurrencies which can be speculated to be pegged to order property like fiat foreign money, might be “the primary to get regulated.”

“Why? The variance within the definition by product. What’s a peg? What’s an algorithmic stablecoin? Is it steady? Do consumers perceive what the dangers are? It wants requirements,” he mentioned.

Gensler and the SEC have also already hinted at plans for stablecoin regulation, as lawmakers fear that stablecoins are a potential threat to financial stability. Federal Reserve chair Jerome Powell has warned of stablecoins too, deeming them dangerous and inclined to fraud.

Nonetheless, “any dialogue of crypto regulation has to start out with the information that there are already legal guidelines towards fraud and that ‘crypto’ shouldn’t be monolithic,” Cuban mentioned. “There are lots of layers to ‘crypto.'”

Cuban himself has an extensive crypto portfolio. He not solely bought cryptocurrencies like bitcoin, ether, dogecoin and different altcoins, however has additionally invested in many blockchain companies.

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Disclosure: CNBC owns the unique off-network cable rights to “Shark Tank.” | Mark Cuban says crypto regulation would not be a foul factor


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