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In a recent post on the X social media network, billionaire Mark Cuban has suggested that US Securities and Exchange Commission head Gary Gensler should take a page out of Japan's cryptocurrency playbook.
Cuban has noted that Japan managed to learn from the collapse of Mt. Gox, the now-defunct cryptocurrency exchange, and other failures (such as the Coincheck hack) to efficiently protect investors.
Is the SEC trying to kill crypto?
This came after Cuban accused the SEC of trying to destroy the cryptocurrency industry. "They make it impossible to comply with registration rules," Cuban stated.
Any investment opportunity that involves releasing a token is a "no" for the "Shark Tank" due to the SEC's hostile stance. "The cost in time and legal fees to attempt to register and comply make it impossible to realistically operate, the billionaire explained.
Due to the SEC's broad-brush approach, legitimate companies have been placed "side by side" with junk cryptocurrencies, according to Cuban.
Gensler's legacy is making it impossible for "good companies" to do the right thing, according to Cuban.
A crypto powerhouse
Japan, the fourth-largest economy, is emerging as a thriving cryptocurrency powerhouse. Its politicians are actively working to provide the industry with much-needed regulatory clarity.
Ripple CEO Brad Garlinghouse is yet another SEC critic who has praised Japan's approach to cryptocurrency regulations. At one point, his company even contemplated relocating its official headquarters to Tokyo.
Because of regulatory safeguards, the users of FTX Japan were protected from the turmoil that happened following the collapse of the main exchange in 2022.
"After several major exchange hacks in Japan, the regulator tightened compliance requirements to protect investors, which somewhat handicapped Japanese exchanges in the last bull cycle but it was a sensible move for the longer term," Emi Yoshikawa, the VP of Strategy & Operations at Ripple, said in a post on the X social media.