Billionaire Mark Cuban: SEC Doesn’t Protect Anyone, Current Crypto Regulation Inadequate

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Mark Cuban, a Shark Tank star and the billionaire owner of the NBA team Dallas Mavericks, says the U.S. Securities and Exchange Commission (SEC) doesn’t protect anyone, calling the regulator “the Quickbooks of financial regulation.” He stressed that the Howey Test isn’t enough to cover every crypto situation.

Mark Cuban Slams SEC: They Don’t Protect Anyone

Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, slammed the U.S. Securities and Exchange Commission (SEC) in a post on social media platform X Thursday.

Regarding whether the current securities law is sufficient to regulate crypto, Cuban said: “All you need to know is that Howey was not enough to cover every situation, so Reves came along.” Reves v. Ernst & Young is a Supreme Court case related to the definition of an “investment contract” under the Securities Act of 1933. The billionaire added:

Now there’s a need for a crypto complement to Howey and Reves.

The owner of the Dallas Mavericks opined: “The SEC is the Quickbooks of financial regulation. They don’t protect anyone but they are really good at bookkeeping.”

Cuban further shared: “It’s also nice to know that if the SEC had taken the same path as Japan and required collateral for crypto loans, all the bankrupt crypto services would still be alive. Just as FTX Japan is.”

Moreover, the Shark Tank investor questioned: “Has the SEC ever moved in to protect investors before something bad has happened?”

Noting that he has “supported and profited from Sharesleuth, finding obviously fraudulent companies and publishing what we have found,” the billionaire stressed: “The SEC has never stepped in to stop the fraud.” Sharesleuth is an investigative reporting website dedicated to uncovering securities fraud and corporate malfeasance.

“And of course, Pink Sheets / OTC now have registration and are still prone to fraud,” Cuban continued, concluding:

And then there are the protections for the millions and billions of shares traded in bankrupt companies that the SEC does nothing to prevent. Because hey, registration obviously is enough to protect investors.

Do you agree with billionaire Mark Cuban about the SEC? Let us know in the comments section below.