Mark Cuban told the Harris camp that the FTX Debacle could have been avoided in the US with a different SEC leadership

Billionaire investor Mark Cuban told Vice President Kamala Harris' Crypto Advisor at a luncheon that FTX's collapse could have been avoided if US Securities and Exchange Commission Chairman Gary Gensler had not been in office.

Speaking period Interview With sister company Rug Radio with Farooq Sarmad DecryptCuba has criticized the SEC's reliance on litigation enforcement instead of proactive regulation suited to the crypto industry.

“I said, ‘Look at FTX US and FTX Japan.' I said, ‘What Gary Gensler did in Japan, FTX, Three Arrows Capital — none of them would have been out of business,'” Cuban told Cermad.

The SEC did not immediately return calls Decrypt's Request for feedback.

Cuban pointed to Japan's regulatory framework, which would force crypto businesses to coordinate digital assets held on behalf of clients, as a model that could prevent a crisis that rocked the industry in 2022.

The island nation became one of the first major economies to implement a comprehensive regulatory framework for digital assets. The Financial Services Agency's framework for regulating crypto exchanges is part of the country's Payment Services Act and Financial Instruments and Exchange Act.

In the year The Japanese framework, which went into effect in 2017, mandates stricter regulation of crypto exchanges, including exchange requirements to separate client assets from their own and maintain adequate reserves to ensure the protection of client funds.

After the Coincheck hack in 2018, regulations were further strengthened, including stricter controls and additional requirements for crypto exchanges to protect customer assets, including improved security protocols and capital requirements.

In particular, Japan requires crypto businesses to hold collateral for the digital assets they manage on behalf of their clients, ensuring that the assets are backed up and protected in the event of bankruptcy or other operational failures.

“You have to put it in cold storage to keep it isolated,” Cuban said, noting the importance of separating user funds from crypto business control. “You can't just take the money [former FTX CEO] Sam Bankman-Fried make it and lend it to yourself.

Crypto political landscape

Cuban's comments come as tensions flare between political camps in crypto in the lead-up to November's US election. Many in the industry believe former President Donald Trump is a strong candidate to protect their interests.

Trump is taking the United States to “theThe planet's capital crypto“If re-elected. His platform includes a pro-crypto stance, and he has said he intends to develop a more crypto-friendly regulatory environment, which contrasts with the SEC's current approach under Gensler.

Harris, for his part, has been particularly vague Future policies for cryptoHer administration will “invest in biomanufacturing and aerospace, and continue to dominate AI and quantum computing, blockchain and other emerging technologies,” she said.

Either way, the revelation that Cuba told Harris that tougher regulations could help stave off an industry collapse adds to discussions the billionaire said she had with her advisers.

In July, Cuba He said he deserved it. Harris has received “a lot of questions about crypto from her camp,” taking it as a “good sign” that compliance with regulations is accepted in the world's largest economy.