Mark Cuban Urges CFTC Regulation for Crypto Ahead of Election

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Billionaire investor Mark Cuban has called on the Commodities Futures Trading Commission (CFTC) to take charge of regulating the entire crypto industry, while also urging the U.S. Congress to provide clarity before the 2024 presidential election.

Mark Cuban expressed his views in a May 10 post to his 8.8 million followers on X, suggesting that offering regulatory clarity could potentially secure another presidential term for Joe Biden.

Mark Cuban Requests Clarity

He emphasized the importance of defining specific registration requirements for the crypto industry, similar to other regulated sectors, to provide clear guidelines for companies operating in the space.

Mark Cuban warned that if Biden fails to secure another term, the Securities and Exchange Commission (SEC) and its Chair, Gary Gensler, may face repercussions, as crypto voters could hold them responsible.

CFTC Should Control Crypto, Says Mark Cuban

According to Mark Cuban, assigning all crypto regulation to the CFTC would be a better option. He criticized Gensler for his strict regulatory stance, claiming that he has not adequately protected investors against fraud.

Cuban’s sentiment echoes concerns expressed by leaders in the crypto community about Gensler’s enforcement-focused approach, which many believe has made it challenging for legitimate crypto companies to operate in the U.S.

SEC and Crypto Enforcement Actions

In 2023 alone, the SEC initiated 46 enforcement actions against crypto firms, according to data from litigation consulting firm Cornerstone Research. CFTC Chair Rostin Behnam also anticipates another cycle of enforcement actions within the crypto industry in the next 6 to 18 months.

With the U.S. election scheduled for November 5, crypto has emerged as a key issue for many voters. A recent online poll conducted in April with 1,201 registered voters revealed that more than two-thirds of respondents agreed that crypto is more equitable than the traditional financial system.

Biden Administration and Crypto Regulation

However, the Biden administration has faced criticism from the crypto community in recent months. Cardano founder Charles Hoskinson accused the administration of attempting to “destroy the American cryptocurrency industry.”

This criticism intensified when Biden announced plans to veto a joint resolution aimed at overturning SEC guidelines discouraging banks from holding crypto assets in custody.

As the U.S. presidential election approaches, regulatory clarity and the treatment of crypto by federal agencies are likely to remain significant issues for voters and industry participants alike. The call for CFTC regulation by Mark Cuban underscores the growing demand for a clear regulatory framework that fosters innovation while protecting investors.

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