TechFlow reported on October 5, citing Decrypt, that billionaire investor Mark Cuban said in an interview he had told U.S. Vice President Kamala Harris’s cryptocurrency advisor that the collapse of FTX could have been avoided if not for Gary Gensler leading the U.S. Securities and Exchange Commission (SEC).
Cuban criticized SEC Chair Gary Gensler for over-relying on enforcement through litigation rather than establishing targeted regulatory policies for the crypto industry. He specifically referenced Japan's regulatory model, praising its requirement that crypto firms fully collateralize digital assets held on behalf of customers. Cuban stated, “If Gensler had adopted an approach similar to Japan’s, companies like FTX and Three Arrows Capital would not have collapsed.”
Japan has implemented a comprehensive digital asset regulatory framework since 2017, mandating strict segregation of customer assets and maintenance of sufficient reserves. After the 2018 Coincheck hack, Japan further strengthened its oversight by enhancing security protocols and capital requirements for crypto exchanges.
