Mark Cuban Slams SEC’s Regulatory Approach in Ripple-XRP Controversy

• Mark Cuban condemns the SEC for their litigation-centric approach in the Ripple-XRP case, claiming it fails to protect small investors.
• The billionaire suggests that clear rules from Congress or the SEC could resolve the situation.

Dallas Mavericks owner and ‘Shark Tank’ star, Mark Cuban, has expressed his critique of the U.S. Securities and Exchange Commission’s (SEC) approach in the ongoing case involving Ripple’s XRP. Cuban suggests that the SEC’s mission appears more aligned with relentless litigation rather than protecting the interests of smaller investors.

Mark Cuban’s Take on the SEC-Ripple Dispute

Mark Cuban has taken to Twitter to voice his stance on the SEC’s case against Ripple regarding XRP. His comments were made in response to the SEC’s filing against Terraform Labs and co-founder Do Kwon, where the regulator claimed the Ripple ruling was “erroneously adjudicated.” Cuban, however, voiced disagreement with the regulator’s depiction of every buyer as an investor.

Cuban asserted,

“That’s not the case and Ripple made that clear. Securities have one purpose, to be a security. For a DeFi or CEX buyer, it’s impossible to know why a buyer buys. But it is possible to look at the Blockchain and see there are transactions based on the utility of the token.”

He continued, criticizing the SEC’s decision to litigate rather than follow Japan’s example and establish clear regulations to protect investors. This litigation approach, he argues, sets unrealistic expectations for small entrepreneurs and investors in the crypto sector, expecting them to consult securities attorneys for guidance.

From Cuban’s viewpoint, the SEC’s mission has deviated from the protection of small investors. He pointed to the billions of shares trading in bankrupt, pink sheet, and OTC companies as evidence of this deviation. In his words,

“Their goal is to litigate. And litigate more. And litigate more.”

Cuban believes that the current regulatory impasse could be easily resolved if the SEC or Congress set clear, definitive rules. The billionaire and Dallas Mavericks owner previously expressed that the SEC’s assumption that its framework covered every potential situation was arrogant.

This criticism comes amidst a growing call for clear legislation to regulate crypto by several U.S. lawmakers. Following the Ripple ruling, SEC Chairman Gary Gensler expressed disappointment but affirmed the regulator’s continued efforts to bring crypto firms into compliance. The SEC has also requested additional funds from Congress to handle crypto-related risks and transgressions.

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