Mark Cuban. Adam Glanzman/Getty Images
On Wednesday, Mark Cuban told Coinbase CEO Brian Armstrong that he would "go on offense" against the SEC.
Cuban's tweet was in response to Armstrong's thread laying into SEC and threatening to sue Coinbase.
Insider was told by James Wo, CEO and digital asset manager DFG that he believes Coinbase should sue the SEC - and that this could prove to be beneficial long term.
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After the threat of suing the crypto exchange, Mark Cuban told Coinbase CEO Brian Armstrong on Wednesday to "go on offense" against the Securities and Exchange Commission.
Brian, this is regulation via litigation. The billionaire entrepreneur tweeted that they are incapable of navigating this by themselves and fear making mistakes. "You must be on the offensive."
Cuban's tweet was in response to Armstrong's thread laying into SEC. Armstrong claimed that the agency threatened to sue Coinbase for offering a new interest-bearing product called Lend.
Armstrong stated that there has been "some really sketchy behavior from the SEC lately." Armstrong stated that the goal of the SEC is to protect investors and create fair market. Who are they protecting and what is the harm?
Many people in the crypto industry agreed to Cuban. Jerry Brito, a well-known lobbyist, tweeted that Coinbase should allow the SEC to sue it and obtain legal clarity through the courts.
Insider was told by James Wo, CEO and digital asset manager DFG that he believes Coinbase should sue the SEC - and that this could prove to be beneficial long term.
Wo said that he would consider this a short-term dispute between regulators and crypto businesses. He was the one who led FTX.US's recent acquisition of LedgerX, a regulated crypto exchange. Regulators can't give clear instructions without these conflicts.
Wo said that "in the long-term, all these problems would be solved" once SEC clarifies what is permissible.
Since months, the Chairman of the SEC Gary Gensler has been indicating that there will be more regulation of crypto. Gensler stated that crypto's multi-trillion-dollar size will require a similar public policy framework to other industries in an interview with Financial Times in August.
