Mark Cuban on Crypto: Could the US Learn a Bit from Japan?

Billionaire investor Mark Cuban made his entrance into the question of crypto regulation. His primary concern is the US Securities and Exchange Commission, which Cuban feel is holding back innovation. He says the US could use a page from Japan on regulating cryptos. 

Let's jump into his concerns and the broader conversation on crypto regulations.

Cuban's Concern: Is the SEC Stifling Innovation?

Mark Cuban, a big name in the crypto universe, says the current approach is choking the industry in the US. He attacked the SEC for a few reasons, namely:

Overly Strict Regulations

As Cuban argues, it was a no-brainer to establish that the strict rules set by the SEC made living within the law strict for crypto businesses in the US.

Reactive approach

He says that the SEC reacts to problems all too often rather than trying to create a positive environment for crypto.

Base on registration

Cuban says that depending on registration does not protect investors.

Learn from Japan!!

He thinks that the US should take a page from Japan. In 2017, Japan legalized Bitcoin and has since been one of the front-running countries regulating crypto. 

Here's what Mark Cuban likes about Japan's approach:

Clarity on Regulatory Framework

There is proper regulation regarding crypto exchanges in Japan, bringing stability while leaving room for innovation.

Consumer Protection

The Japanese regulatory body protects investors from fraud and scam activities.

Favorable Atmosphere

Japan favorably accommodates an active cryptocurrency market.

A Greater Discussion: Regulation and Innovation

The contentions raised by Cuban represent one side of a greater debate on how to oversee this volatile technology without strangling its promise. Salient points for consideration would include:

Making a Balance

It is an ideal situation when the two concepts justly balance each other. While investors should be protected against scams, regulation must not hamper innovation. 

Global Market Place

The phenomenon of cryptocurrency is a global one. When the regulations in the US become too cumbersome, companies and innovation will merely go overseas.

Apply Existing Frameworks

There is a big question about whether existing regulations can be adapted for crypto or an altogether new framework must be implemented.

The Future of Crypto!

By calling out to begin the main work, Cuban indicated that discussions related to crypto regulations will continue. The US SEC has a tight balance to ensure that cryptocurrency's future is secure and innovative. 

While valuable, this also is his one-man point of view. It will take more deliberations and studies to arrive at the next best step in the future course on crypto regulations in the United States and worldwide.

For more information, contact the Crypto Accountants.