Billionaire Mark Cuban Blames SEC Leadership for FTX Debacle in Discussion with Harris’ Crypto Advisor
Arslan Butt is an experienced webinar speaker, market analyst, and content writer specializing in crypto, forex, and commodities. He provides expert insights, trading strategies, and in-depth analysis...
Billionaire investor Mark Cuban recently stated that the collapse of FTX could have been avoided if the U.S. had followed Japan’s regulatory framework for cryptocurrency. Speaking during an interview with Rug Radio, Cuban emphasized that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler’s enforcement-heavy approach has failed to provide clear guidelines for crypto businesses.
He suggested that Japan’s regulations, which require crypto firms to collateralize digital assets held on behalf of customers, would have prevented FTX and other failures like Three Arrows Capital.
Japan’s Financial Services Agency (FSA) regulations are part of the Payment Services Act and Financial Instruments and Exchange Act, which have been in effect since 2017.
The framework mandates that exchanges separate customer assets from their own and maintain sufficient reserves to protect investors in the event of insolvency or operational failures.
Mark Cuban tried to blame Trump for BLM RIOTS and ran out of words when @DavidSacks pressed him on his ridiculous arguments against Trump.@mcuban is embarrassing himself in front of the world at this point
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Cuban argued that a similar framework in the U.S. would have forced companies like FTX to safeguard user funds, potentially avoiding a financial catastrophe.
“What I said was, ‘Look at FTX US and FTX Japan.’ I said, ‘If Gary Gensler would have done just what they did in Japan—FTX, Three Arrows Capital— none of them would have gone out of business,’” Cuban stated. The
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