The Former hedge fund manager and CNBC Mad Money’s host, Jim Cramer, recently expressed his disappointment in the cryptocurrency industry in a series of tweets following the actions of the U.S. Securities and Exchange Commission (SEC).
Primarily, Cramer’s criticisms were targeted at Binance, a significant cryptocurrency exchange, and he mistakenly referred to the leading blockchain platform, Solana, as ‘Soldano’. His tweets prompted a reaction from the world-renowned entrepreneur and “Shark Tank” participant, Mark Cuban, who questioned the SEC’s efforts to protect stock market investors.
Jim Cramer Accuses the Crypto Industry
The 68-year-old famous figure faced a Twitter backlash today, and his latest tweet about Solana drew attention from many. Known as the “Ethereum killer,” Solana, a blockchain platform, rivals popular competitors such as Hedera, Near, and Cardano.
Known for processing a large number of transactions at lower fees, Solana had become the fifth-largest cryptocurrency with a market value exceeding $66 billion in 2021. However, its value has since fallen to approximately $8 billion.
Mark Cuban, one of the leading advocates of cryptocurrencies and an investor in the Layer-2 network Arbitrum, responded to Cramer’s tweets. While admitting he did not compare crypto with stocks, Cuban questioned the SEC’s approach to protect investors in various markets.
He expressed concerns about many OTC or Pink Sheets stocks that are not traded on exchanges, and asked what percentage of these stocks belonged to real companies. With a mocking but curious tone, Cuban wondered if the SEC was making enough effort to protect investors from these types of stocks.
SEC and Binance Deadlock
The SEC recently sued both the Coinbase and Binance exchanges, claiming they operated as unregistered securities exchanges, brokers, and clearing agencies. Moreover, according to SEC Chairman Gary Gensler, the regulatory authority claimed that the cryptocurrency industry was built on non-compliance with U.S. securities laws.
Following this, Cramer made a statement on Twitter, labeling Binance as “fake” and advising users to withdraw their funds immediately. Also, expressing his disappointment, he asked, “Do people understand that the SEC is saying that so many coins are worthless?”
These remarks followed Cramer’s conversation on the Squawk on the Street program, where he reiterated his concerns about Binance and called on users to take action. As the SEC’s actions against major crypto platforms continue to make headlines, the debates surrounding the lawsuits and the clear need for regulation in the cryptocurrency industry are bound to heat up.
