Cardano’s founder and Mark Cuban, attacked the SEC for its harsh enforcement of the cryptocurrency market.
On the current crackdown by the SEC on cryptocurrency staking, Hoskinson and Cuban respond.
More industry participants have kept criticizing the U.S. Securities and Exchange Commission for its recent string of unfavorable enforcement actions in the wake of the SEC’s crackdown on cryptocurrency staking. The latest cryptocurrency stakeholders to criticize the SEC’s choice to pursue American companies that provide bitcoin staking are Cardano founder Charles Hoskinson and billionaire investor Mark Cuban.
Read: Charles Hoskinson Questions Need for More Clarity on NFT Buyer Rights
Hoskinson: Gensler Can’t Destroy Crypto
Charles Gasparino, a senior correspondent for Fox Business, tweeted a statement from Hoskinson claiming that SEC Chairman Gary Gensler does not have the authority to demolish the emerging cryptocurrency market completely. Cardano’s chief remarked that just as Gensler cannot “kill oil,” so does Gensler not possess the capability to do the same for cryptos.
Gasparino reported that during an interview with Fox Business journalist Eleanor Terrett, she asked Hoskinson if he believed the SEC Chairman could make tough decisions that may harm the crypto industry. Hoskinson’s reply implied that Gensler did not possess the authority to dismantle the industry.
SEC Enforcement Actions Criticized by Mark Cuban
According to recent news, Mark Cuban responded to the SEC’s recent crackdown on cryptocurrency staking services. Cuban stated that lending security tokens are similar to stock loan programs.
An article shared by Mark Cuban provided more information to support his argument. The American billionaire investor claimed that the article did not suggest that stock loans must be registered with the Securities and Exchange Commission (SEC).
A legal Battle With the SEC Doesn’t Scare Coinbase
Following its decision to crack down on bitcoin staking programs in the United States, the SEC has faced harsh criticism. As part of a settlement with the SEC, the largest cryptocurrency exchange, Kraken, agreed to pay a $30 million fine and discontinue its staking program.
The cryptocurrency community responded to the recent developments, with San Francisco-based crypto exchange Coinbase releasing a statement to differentiate its staking program from Kraken’s and to argue that it should not be classified as securities. Coinbase indicated that it is willing to fight the Securities and Exchange Commission (SEC) in court if it disagrees.
According to Coinbase, stablecoins are not securities.
