Billionaire Mark Cuban defends cryptocurrencies and criticizes John Reed Stark, a former official at the Securities and Exchange Commission (SEC). Cuban points out the inconsistency in Stark’s criticism of collective thinking in the world of cryptocurrencies and asserts that it helped save depositors when regulation and oversight failed in traditional banks.
Cuban also reveals a controversial practice within the banking industry, stating that banks exploit a loophole in the Federal Deposit Insurance Corporation (FDIC) deposit insurance program. This loophole allows banks to secure deposits up to a million dollars instead of the maximum limit set at $250,000.
Cuban’s statements serve as a response to Stark’s claim that banks provide more protection compared to cryptocurrency companies. Cuban’s tweets challenge the presumed security of banks and shed light on current regulatory practices and their impact on depositors.