Dallas Mavericks Owner, Mark Cuban, Calls for Proof of Authority Basis to Crypto Regulation
Crypto regulation in the United States remains a hot-button topic, especially following recent moves by regulatory watchdogs in the country. While many are wary of these regulators and their views on the industry, some pro-crypto names are welcoming the possible developments.
A Trade-Off for Privacy
Earlier this week, crypto enthusiast and billionaire businessman Mark Cuban said on Twitter that he would be open to the idea of crypto regulation as long as it would be centered around existing fraud laws.
Cuban, whose Dallas Mavericks are one of the few NBA teams to accept crypto payments, explained that the ideal crypto laws would require identity and Proof of Authority. This way, it keeps innovation alive and protects consumers.
As Cuban explained, implementing a regulatory regime based on Proof of Authority will reduce cryptocurrencies’ anonymity and privacy – two tenets on which digital assets stand. However, it seems to be a healthy trade-off considering the stability that the market will be getting from stable regulation.
While Cuban has grown into one of the crypto industry’s biggest spokesmen, he remains steadfast in his push for regulations. In July, following the bank run on decentralized finance (DeFi) stablecoin protocol, Iron Finance, Cuban called for increased stablecoin regulation.
Speaking with Blomberg, Cuban blamed himself for being “lazy” and not doing enough research on Iron Finance. But, he also called for additional regulations to the space. Despite the pushback he got, Cuban reaffirmed that regulation could be a good thing.
At the same time, the billionaire hasn’t been all pro-government. He criticized the bipartisan infrastructure bill, which passed the Senate last month and looks to impose tighter reporting rules on crypto businesses.
Regulators Moving in On Crypto, Stablecoins
The current regulatory landscape remains unstable, although agencies are working hard to bring some clarity to the industry. Earlier this week, Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), told the Senate Banking Committee that he and his team are “working overtime” to regulate crypto and protect investors.
In the hearing, Gensler explained that ensuring oversight hasn’t been easy – considering that there are well over 6,000 digital assets and more people are getting into the space by the day.
The policymaker requested additional time – as well as people – to get regulations past the goal line.
Besides the SEC, the Treasury Department is also working towards stablecoin regulation. A recent Bloomberg report showed that the Department is preparing a review showing the challenges posed by stablecoin redemptions and the possible effects of a run on the crypto market.
As the report states, Treasury officials are looking to mitigate “the most urgent risks” associated with Tether (USDT) and other stablecoins while also pointing out the threats that a “fire-sale run” on cryptocurrencies could have on broad financial stability.
USDT remains the most dominant stablecoin, holding about 56 percent of the market. Criticism has slammed the asset’s redemption process and backing, with some holders claiming that they’re unable to redeem their tokens for fiat.