Many investors have been whipsawed by the market's sharp downturn, but billionaire investor Leon Cooperman thinks reinstating an old trading rule could help protect them: The uptick rule.

The uptick rule was a rule from the Securities and Exchange Commission that prevented short sellers from putting more pressure on a security that was already languishing. The rule was implemented in 1938 but was eliminated in 2007 as electronic trading began to take over Wall Street.

Cooperman said Sunday night that, by bringing back the old rule, market moves such as the ones seen last week, would be less volatile. He added that bringing back the uptick rule would be even more effective at stabilizing the market than lower rates from the Federal Reserve at this point.

"If you ask me: cutting the rates or reinstating the uptick rule? I say reinstate the uptick rule," Cooperman said during a CNBC special Sunday evening. "Rates are already low enough."