NBA rules state players, coaches and trainers "must stand and line up in a dignified posture along the foul lines during the playing of the American and/or Canadian national anthems".
However, several NFL players have said they plan to kneel during the anthem, a protest against police brutality and racism initially led by former San Francisco 49ers quarterback Colin Kaepernick starting in 2016.
Cuban wants NBA players to be given the choice if they want to do likewise during their season.
"Whether it's holding their arm up in the air, whether it's taking a knee, whatever it is, I don't think this is an issue of respect or disrespect to the flag or to the anthem or to our country," he told ESPN on Thursday.
"I think this is more a reflection of our players' commitment to this country and the fact that it's so important to them that they're willing to say what's in their heart and do what they think is right.
"I'll defer to [commissioner] Adam [Silver] on any final judgments and [National Basketball Players Association executive director] Michele Roberts.
"But the reality is, my hope is we'll let the players do exactly what they think is the right thing to do."