On October 5, 2024, billionaire investor Mark Cuban criticized the U.S. Securities and Exchange Commission (SEC) under Chair Gary Gensler for its handling of cryptocurrency regulation during an interview on Rug Radio. Cuban claimed that the collapse of FTX could have been avoided if the SEC had adopted a regulatory framework similar to Japan's, which mandates that crypto businesses collateralize digital assets held on behalf of customers.
Cuban highlighted Japan's proactive approach, implemented in 2017, which requires exchanges to separate customer assets from their own and maintain sufficient reserves. This framework was strengthened after the Coincheck hack in 2018, ensuring enhanced security and capital requirements.
Amid rising tensions in the crypto political landscape, Cuban's remarks come as the U.S. approaches its presidential election. He noted that former President Donald Trump is perceived as a stronger advocate for crypto interests compared to the current administration, which has been vague on specific policies. Cuban's engagement with Vice President Kamala Harris's advisors suggests a growing dialogue on the need for improved regulations in the cryptocurrency sector.