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Former hedge fund manager and host of CNBC Mad Money, Jim Cramer, expressed his frustration with the cryptocurrency industry in a series of tweets following recent actions by the U.S. Securities and Exchange Commission (SEC). Cramer’s criticism was primarily directed at Binance, a major cryptocurrency exchange, while also inadvertently mentioning “Soldano” instead of Solana, a prominent blockchain platform. The tweets sparked a response from entrepreneur and ‘Shark Tank’ star, Mark Cuban, who questioned the SEC’s efforts in protecting investors across the equity market.
Jim Cramer Slams Crypto Industry
The 68-year-old TV personality went on a Twitter rampage today and his latest tweet on Solana has grabbed the interest of many. Solana, a blockchain platform often touted as an “Ethereum-killer” rivals popular competitors like Hedera, Near, and Cardano among others. Known for its ability to process a high number of transactions with lower fees, Solana became the fifth-largest cryptocurrency in 2021 with a market cap exceeding $66 billion. However, its value has since plummeted to approximately $8 billion.
Read More: Elon Musk Shills Dogecoin as SEC Designates Top Cryptos as Securities
Notably, Mark Cuban, a prominent advocate for cryptocurrencies and an investor in Layer-2 network Arbitrum, responded to Cramer’s tweets. While Cuban acknowledged that he was not comparing crypto to stocks, he questioned the SEC’s approach to protecting investors in various markets. Cuban raised concerns about the vast number of OTC or Pink Sheets stocks that are not traded on exchanges and asked what percentage of these stocks belonged to genuine companies. In a sarcastic yet curious tone, Cuban wondered about the SEC’s efforts to protect investors from these stocks, enquiring whether they were even doing enough.
Hey Jim. What about the 18k or so stocks trading OTC /Pink Sheets that are not traded on exchanges ? What percent do you think are real companies ? Not comparing these to crypto. Just looking at the approach the SEC takes to protect investors from many of these registered…
— Mark Cuban (@mcuban) June 6, 2023
Jim Cramer’s Binance Warning
The SEC recently filed briefs against both Coinbase and the Binance exchange, alleging that they operated as unregistered securities exchanges, brokers, and clearing agencies. Moreover, according to SEC Chair Gary Gensler, the regulatory authority claimed that the cryptocurrency industry as a whole was built on non-compliance with U.S. securities laws.
Following this, Cramer took to Twitter, labeling Binance as a “sham” and advising users to withdraw their funds immediately. He also expressed frustration, stating, “Do people understand that the SEC is saying that so many of the coins are worthless.” These remarks came after Cramer’s appearance on Squawk on the Street, where he echoed his concerns regarding Binance and urged its users to take action.
As the SEC’s actions against major crypto platforms continue to make headlines, the debate surrounding the lawsuits and the need for clear regulation in the cryptocurrency industry is going to get heated.
Also Read: Coinbase Says “We’ll Continue To Operate As Usual” In Response To SEC Lawsuit
