Mark Cuban Meets with Kamala Harris’ Team: Is SEC Chair Gary Gensler on the Way Out?

Billionaire Mark Cuban has made some bold statements about SEC Chair Gary Gensler, criticizing his enforcement-first regulatory approach. Cuban mentioned that even Kamala Harris’ team does not support Gensler’s long-standing stance on this matter. Meanwhile, U.S. Congress members Tom Emmer and Ritchie Torres have condemned Gensler for coining the term “crypto asset securities.” Emmer accused Gensler of misusing securities laws to unfairly target the crypto industry.

Mark Cuban Discusses SEC Chair with Kamala Harris’ Team

On Tuesday, billionaire investor Mark Cuban criticized SEC Chair Gary Gensler following a recent hearing. Cuban revealed that he had spoken with Kamala Harris’ team, who made it clear they oppose Gensler’s regulation-through-enforcement approach. Harris has recently pledged to boost investment in the crypto sector and promised to support its growth if she becomes president.

I talked to the Harris team today who told me in no uncertain terms that they are against “regulation through litigation “

CYA Gensler.

You leaving is worth a point in GDP growth https://t.co/NbPd4RQSBF

— Mark Cuban (@mcuban) September 24, 2024

As reported by Deythere, the SEC has adopted an enforcement-driven approach to regulation, involving legal actions against individuals and companies, thereby creating regulatory precedents. The crypto industry, which has long called for clear rules, has heavily criticized this approach.

Congressman Also Criticizes Gary Gensler

In addition to Mark Cuban, Congressman Tom Emmer also voiced strong criticism against SEC Chair Gary Gensler. Emmer labeled Gensler as the “most destructive and lawless Chair” in history. Emmer argued, “You invented the term ‘crypto asset securities,’ which appears nowhere in the statute.” He further stated that Gensler has failed to provide any interpretive guidance on how crypto assets can be classified as securities.

This growing backlash against Gensler’s approach, combined with previous reports, suggests that the SEC Chair could be ousted.

Is Gensler Misusing Securities Laws?

During Tuesday’s testimony, Representative Ritchie Torres accused Gary Gensler of inventing the term “digital asset securities” in a bid for power. Torres made a striking comparison, stating that if in-game NFT transactions are subject to securities laws, the same could be said for Yankee ticket sales. He added, “Mr. Gensler is wrongly classifying collectibles, artwork, and tickets as securities.” Responding to this, Mark Cuban tweeted: “Gensler is gone.”

Gensler is gone https://t.co/NbPd4RQkM7

— Mark Cuban (@mcuban) September 24, 2024

SEC Commissioner Hester Peirce also acknowledged that the agency should have long ago refrained from treating crypto assets as securities. She admitted, “We are essentially conceding in a footnote that the token itself is not a security. This was something we should have recognized a long time ago.” Peirce further criticized the SEC for giving preferential treatment to major players like BNY Mellon, allowing them to bypass certain rules, such as SAB 121 accounting standards.

Mark Cuban, Gary Gensler, SEC regulation, Kamala Harris, crypto asset securities