Mark Cuban stated the Kamala Harris campaign opposes the SEC Chair’s “regulation-by-enforcement” practices.
Following the hearing with SEC Chair Gary Gensler on Tuesday, tech billionaire Mark Cuban criticized Gensler’s regulatory approach, particularly his reliance on enforcement actions.
In a tweet, Cuban mentioned that even Vice President Kamala Harris’s team opposes this method, which Gensler has consistently employed.
Mark Cuban Engages with Kamala Harris’s Team
Cuban, who has been vocal about his disapproval of Gensler, revealed he had spoken with Harris’s team, who indicated their stance against “regulation through litigation”—a reference to the current regulatory strategy for the crypto industry in the U.S. Harris has also recently pledged to encourage crypto investments and support industry growth if she becomes President.
Cuban took further aim at Gensler, suggesting that his departure could benefit the economy, remarking, “You leaving is worth a point in GDP growth.” This came after Gensler admitted to mishandling the Debt Box case during the hearing.
The SEC has been criticized for using enforcement-based regulation for assets like cryptocurrencies.
However, this involves taking legal action against individuals and businesses to set regulatory precedents.
The crypto sector, which has long called for clearer guidelines, has voiced frustration with this approach.
Cuban isn’t alone in his criticisms. Congressman Tom Emmer also condemned Gensler, calling him the most “destructive” and “lawless” SEC Chair in history.
Emmer accused Gensler of coining the term “crypto asset security” and continuing enforcement without providing guidance. Emmer tweeted:
“You’ve made up the term crypto asset security. This term is nowhere to be found in statute, you made it up [and] you never provided any interpretive guidance on how crypto asset security might be defined within the walls of your SEC.”
Amid mounting opposition, there have been suggestions that Gensler may be removed from his role as SEC Chair.
Is Gensler Misapplying Securities Laws to Attack Crypto?
During Gensler’s testimony, Representative Ritchie Torres accused him of a “power grab” by introducing the term “digital asset securities.” Torres raised concerns about the SEC potentially applying securities laws to in-game NFTs, questioning whether similar laws would apply to Yankee ticket sales. He remarked, “Mr. Gensler is misclassifying collectibles, art, and tickets as securities.”
Responding to this, Mark Cuban tweeted, “Gensler is gone.”
SEC Commissioner Hester Peirce has also criticized the agency’s approach, admitting that the SEC should have acknowledged long ago that crypto assets are not securities.
She pointed out, “[By] tucking into a footnote, we admit that now actually the token itself is not a security. That’s something that we should have admitted long ago.”
Peirce further accused the SEC of favoring large entities like BNY Mellon by allowing them to bypass the SAB 121 accounting rules.
