Investing.com – Tech giant Mark Cuban and former Securities and Exchange Commission (SEC) official John Reed Stark engaged in a heated exchange about the ongoing regulatory crackdown in the crypto industry.
The discussion was sparked by the recent Temporary Restraining Order (TRO) hearing against Binance, which sought to freeze all US assets on the exchange.
Mr. Cuban argued that not all companies in the cryptocurrency industry that own or plan to use tokens are large “companies,” as Mr. Stark had assumed. He pointed out that most crypto applications are small and only involve a few people.
On the other hand, Mr. Stark sees the SEC’s actions as necessary because the industry is still unregulated. He says the SEC is “trying to protect investors” from potential fraud and scams in the industry. He also believes the SEC’s actions will ultimately help the industry by weeding out bad actors and promoting transparency.
In this regard, it should be noted that Mark Cuban has drawn a parallel between the beginnings of the Internet and the current state of the cryptocurrency sector. Despite criticism and skepticism, Mark Cuban is confident that winners in the cryptocurrency industry will be game changers, just as successful companies did in the early days of the internet.
“90% of blockchain companies will go bankrupt. 99% of tokens will go bankrupt. Just like 99% of the top internet companies,” the investor wrote on Twitter (NYSE:), adding, “But the winners will be the game changers. This is how technology works. »
Finally, Cuban also felt that while the cryptocurrency industry is subject to valid criticism, these do not call into question the potential positive impact it can have on the economy. He thus opined that cryptocurrency derangement syndrome, which refers to an irrational fear or hatred of cryptocurrencies, is just as big a problem as exaggerating the earning potential of these assets.