The United States Securities and Exchange Commission (SEC), which recently took regulatory action against the cryptocurrency sector, has alarmed renowned investor and host of Mad Money, Jim Cramer. Cramer took to Twitter in response to the SEC’s accusations against Binance and Coinbase to criticize the whole cryptocurrency sector.
.@jimcramer: If you have your money with @binance, you should get it out right now.@SECGov Chair @GaryGensler joins Jim, @carlquintanilla & @davidfaber to discuss the regulator’s cases against $COIN & Binance. pic.twitter.com/oPIvcHAuUn
— Squawk on the Street (@SquawkStreet) June 6, 2023
“Do people understand that the SEC is saying that so many of the coins are worthless,” Cramer Tweeted, after saying on Squawk on the Street that “if you have your money with Binance, you should get it out. Right now.”
In addition to calling Binance a “sham”, Cramer stated that he was “done with Soldano”. While it seems possible that Jim Cramer meant to refer to Solana, a blockchain technology similar to Ethereum, a small misspelling caused the error. With a market worth of more than $66 billion in 2021, Solana was the fifth largest cryptocurrency thanks to its reputation for processing massive volumes of transactions at minimal costs. Its market cap is at $7.9 billion, though.
I have had it with Soldano
— Jim Cramer (@jimcramer) June 6, 2023
The well-known Dallas Mavericks owner and a prominent investor on “Shark Tank”, Mark Cuban, responded to Cramer’s tweet. Citing the substantial amount of equities sold over-the-counter (OTC) or on the Pink Sheets, Cuban questioned if the SEC is sufficiently safeguarding investors generally. Cuban questioned the legality of many registered stocks and asked the SEC to adopt a more thorough strategy.
Cramer’s frustration with the crypto industry and the SEC’s actions underscore the growing scrutiny and regulatory challenges facing the cryptocurrency market. The industry is grappling with increased attention and oversight. The dynamic nature of digital assets necessitates enhanced transparency and regulation. Ongoing discussions revolve around protecting investors and establishing regulatory frameworks.