Cuban was catapulted back into the news after claiming that Gary Gensler’s anti-crypto stance could cost Joe Biden the presidential election in November.

Billionaire investor and Shark Tank star Mark Cuban wasn’t always a fan of cryptocurrencies.

Just over four years ago, he was especially dismissive of Bitcoin – declaring that he preferred bananas because they have uses.

Fast forward to 2022, things couldn’t have been more different. In an interview with comedian Jon Stewart, Cuban revealed that 80% of the investments he made outside of Shark Tank were related to digital assets.

The businessman also spoke of his optimism regarding decentralized autonomous organizations and smart contracts – and the belief that companies powered by collective governance and self-executing agreements will dominate the 21st century.

But in their eyes, there is one thing stopping digital assets from reaching their full potential, especially in the US: regulatory paralysis.

Cuban has emerged as a vocal critic of the Securities and Exchange Commission – arguing that the body, under Gary Gensler, was asleep at the wheel when FTX collapsed.

Last summer, the 65-year-old accused the SEC of arrogance — and said the widespread financial damage caused by Sam Bankman-Fried could have been avoided. Pointing out how Japan learned lessons after Mt. Gox’s 2014 bankruptcy, he posted:

“When FTX crashed, NOBODY AT FTX JAPAN LOST MONEY. If the US/SEC had followed suit, establishing clear regulations requiring separation of client and company funds and clear portfolio requirements, NO ONE HERE WOULD HAVE LOST MONEY ON FTX.”

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The Voyager disaster

Of course, hindsight is 20/20. Although Cuban’s significant public profile was unrelated to FTX’s spectacular collapse – unlike his fellow Shark Tank star Kevin O’Leary and countless other celebrities – the businessman was known for betting on the wrong horses in the past.

Last week, the Dallas Morning News reported that Cuban continues to face legal action for his involvement with the doomed crypto lending platform Voyager Digital.

Mark Cuban promoting Voyager in 2021 | Source: Dallas Mavericks

Cuban is the owner of the Dallas Mavericks, and the basketball team had entered into a high-profile five-year partnership with Voyager in 2021. At the time, the businessman spoke of his ambition to introduce cryptocurrencies to even more sports fans – building in the legacy of accepting Bitcoin and Dogecoin for tickets and merchandise. Between quotes in a press conference that really hasn’t aged well, he said:

“I think Voyager will be a leader among sports and crypto fans across the country.”

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It took just seven months for Cuban to be proven wrong – with Voyager scary the market suspending withdrawals and deposits in July 2022 and admitting that clients can never be cured. A month later, a lawsuit accused him of inducing uninformed customers to put all their savings into a “Ponzi scheme” – and pointed to a quote in which Cuban said Voyager was “as close to risky as you can get in crypto.” There.

The latest report from the Dallas Morning News suggests that although other sports stars have agreed to pay a total of $2.4 million in damages, Cuban is not prepared to reach a settlement – and has long denied allegations of having deceived investors.

As much as Cubano may be jumping over the failures in stopping FTX, the billionaire’s own track record in supporting crypto companies is not without blemishes.

What is happening now?

Cuban was catapulted back into the news after claiming that Gary Gensler could cost Joe Biden the presidential election in November. He went on to warn:

“This is also a warning to Congress. Crypto voters will be heard in this election. You could solve this problem for Biden by passing legislation that defines specific registration for the crypto industry.”

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Some progress is being made here. Republican Cynthia Lummis and Democrat Kirsten Gillibrand proposed specific legislation for stablecoins last month.

Meanwhile, there is widespread excitement on the news that the Financial Innovation and Technology for the 21st Century (FIT21) Act will go to a crucial vote within weeks – potentially giving greater certainty to crypto companies and greater clarity about what is the responsibility of the SEC and the Commodities Futures Trading Commission, respectively.

With 8.8 million followers on X – and a public profile to boot – Cuban is arguably one of the most visible and vocal crypto advocates.

And while it is highly unlikely that Biden will lose the impending election on crypto alone, the billionaire appears determined to use his platform to ensure that the future of digital assets becomes an issue of national importance.

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