Mark Cuban Warns Biden Official Could Boost Trump’s Election Chances
Billionaire Mark Cuban warns that President Joe Biden could lose the Oval Office if he doesn’t listen to “crypto voters” and change the U.S. Securities and Exchange Commission’s (SEC) registration process.
On Thursday, Cuban, the NBA Dallas Maverick’s minority owner and cryptocurrency advocate, spoke at crypto exchange Coinbase’s State of Crypto Summit.
According to Fox Business reporter Eleanor Terrett, who reported the Shark Tank star’s comments on X, formerly Twitter, Cuban spoke to the challenges and limitations of the SEC’s crypto registration process. He called it “a uniquely American Gary Gensler problem,” referring to the SEC chair, who has held that post since 2021.
Cuban has repeatedly criticized the SEC’s stringent regulatory approach to crypto, and reiterated how it might impact young voters, saying that Gensler could “literally cost Joe Biden the election” given that many young voters hold cryptocurrency. A March 2023 Pew Research survey showed 17 percent of American adults say they have invested in, traded, or used a cryptocurrency.
Mark Cuban, of the Dallas Mavericks, walks onto the court before a game against the Boston Celtics on March 1, 2024 in Boston. The billionaire has warned President Joe Biden may lose the Oval Office…
More
Brian Fluharty/Getty Images
The reality TV show investor has called for crypto to be considered a commodity and therefore regulated by the Commodity Futures Trading Commission (CFTC) rather than as a security under the SEC’s jurisdiction.
Cuban told Newsweek in an email Friday afternoon, “Gensler says there are set rules in place for everyone to follow. But if not one company with a token has been able to follow those rules and register, what does that tell you about his intent with the crypto industry?” He added, “Which is exactly why companies are starting elsewhere.”
He wrote, “There is not a single operating company that has registered a token with the SEC. One, stx, spent a fortune and got approved, but they rescinded their registration because it was untenable.”
In 2019, STX, under Blockstack, was the first digital token approved by the SEC. As of 2021, Blockstack’s network is no longer controlled by a single entity, causing its tokens to no longer be considered securities under the SEC.
Cuban highlighted Japan’s crypto “adapted regulations” as a successful example of how to deal with the currency, saying, “It’s really simple. Look at Japan,” referring to when the cryptocurrency exchange FTX went bankrupt in 2022, “FTX Japan was funded and no one lost money there.” Japan’s regulatory framework ensured customer assets are held separately from company accounts, therefore customers were able to withdraw their funds after FTX’s collapse.
“If the SEC had made the same recommendations, setting collateral levels, defining custody rules, and other issues, there is a good chance FTX and 3AC would not be able to do the things they did,” he wrote.
Last Saturday, Cuban replied to crypto-attorney and Fordham University Law adjunct professor Preston Byrne on X, arguing that neither candidate, President Joe Biden nor former President Donald Trump, understand crypto policy. He concluded his post by writing, “And I have said many times that Biden has to choose between Gensler or crypto voters or it could cost him the Whitehouse.”
Do you really think he understands anything about crypto? Beyond saying he made money selling NFTs?
Neither of them does.
And I have said many times that Biden has to choose between Gensler or crypto voters or it could cost him the Whitehouse
— Mark Cuban (@mcuban) June 9, 2024
Back in May, Cuban posted on X: “If @joebiden loses, there is a good chance you will be able to thank @GaryGensler and the @NewYork_SEC. Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD,” adding that “All he has done is make it nearly impossible for legitimate crypto companies to operate, killing who knows how many businesses and ruining who knows how many entrepreneurs.”
Cuban endorsed Biden back in March. He told Newsweek “I have no idea” if Trump, if elected in 2024, would have a different crypto policy.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
