Billionaire Mike Cuban has criticized SEC Chair Gary Gensler after the agency ramped up its actions against the crypto industry this week. The crypto marketplace OpenSea reported that the SEC issued a Wells notice against them, a precursor to formal charges, which OpenSea CEO Devin Finzer believes could have significant implications for the NFT space.
OpenSea allows users to create, buy, and sell non-fungible tokens (NFTs), which the SEC claims may be classified as securities. Expressing his frustration, Cuban took to X (formerly Twitter) to comment, “Gary Gensler screws up again.”
A staunch advocate for crypto, Cuban has been vocal about the SEC’s regulatory approach. In June, he cautioned President Biden, then a candidate for reelection, that ignoring “crypto voters” could jeopardize his chances, labeling the SEC registration process a “uniquely American Gary Gensler problem.”
Finzer expressed concern that the SEC’s actions could hinder innovation, stating that the move into NFTs places countless artists at risk without the means to protect themselves. He argued, “We shouldn’t regulate digital art like derivatives; that could push creators away from making more digital art.”
Cuban also speculated if Gensler is inadvertently helping Republican John Deaton, who is running against Senator Elizabeth Warren, a known crypto critic. Deaton gained attention for his legal battles with the SEC and has drawn financial support from notable figures in the crypto world.
While Deaton may face an uphill battle in the heavily Democratic Massachusetts, he has received backing from prominent crypto executives like Anthony Scaramucci, the Winklevoss twins, and Ripple’s Garlinghouse and Larsen.