Billionaire investor Mark Cuban says he told Vice President Kamala Harris’ crypto advisor over lunch the collapse of FTX could have been avoided if U.S. Securities and Exchange Commission Chair Gary Gensler had not been at the helm.

Speaking during an interview with Farokh Sarmad of Rug Radio, a sister company of Decrypt, Cuban criticized the SEC’s reliance on enforcement through litigation rather than implementing proactive regulation tailored to the crypto industry.

“What I said was, ‘Look at FTX US and FTX Japan.’ I said, ‘If Gary Gensler would have done just what they did in Japan—FTX, Three Arrows Capital— none of them would have gone out of business,’” Cuban told Sarmad. 

The SEC did not immediately return Decrypt’s request for comment.

Cuban pointed to Japan’s regulatory framework, which mandates that crypto businesses collateralize digital assets held on behalf of customers, as a model that could have prevented the crisis that shook the industry in 2022.

The island nation became one of the first major economies to implement a comprehensive regulatory framework for digital assets. Its Financial Services Agency framew

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Author: Sebastian Sinclair