Entrepreneur and crypto bull, Mark Cuban urges Coinbase on an aggressive stance towards the developing conflict with the SEC.
Yesterday, Mark Cuban took to Twitter in defense of Coinbase. He tweeted that the crypto exchange should opt for an “aggressive” stance toward the U.S. Securities and Exchange Commission.
This comes as the SEC threatened Coinbase with a lawsuit over their newest product soon to hit the market. Coinbase Lend offers investors the opportunity of revenue generation off of their crypto holdings by lending out their funds. In the lead up to the launch, Coinbase remained proactive in their communication with the SEC.
However, the regulators responded with a company-wide probe, a request for names on the waitlist, and a lawsuit threat.
In his Tweet, Cuban suggested the SEC seeks understanding over the definition of a stablecoin. “Before you can determine the rules of lending @usdc, you have to define it. By suing, @sec_news gets to play on their home court to regulate it. It could change how DeFi works, but also grow it,” he tweeted at the Coinbase CEO and Mike Novogratz.
The follow-up tweet, Cuban said Coinbase should use this as an opportunity for the crypto space rather than a threat. “Which is why it’s important for @coinbase to be aggressive in their engagement with the SEC,” he said. “It’s better for the industry that they take on the SEC rather than the SEC go after a small decentralized entity and get a quick judgement that becomes the law of the land for DeFi.”
The SEC Clampdown
This summer revealed a new and heated relationship between the crypto industry and the U.S. Securities and Exchange Commission. In early August, U.S. regulators revealed a new bill with disruptive potential for the crypto world.
While SEC chairman Gary Gensler, called on tough-on-crypto officials, others spoke out against the bill as a threat to innovation. Nonetheless, in the weeks following the stifling bill, the SEC started a string of lawsuits and probes into crypto-related ventures.
One such lawsuit is against the founder of BitConnect for his role in fraudulent crypto activities. Then just a day later, the regulators announced a probe into UniSwap, the industry’s largest decentralized exchange (DEX).
While some regulations benefit a growing industry, the crypto space remains on edge as regulations close in.