Mark Cuban says sources provided by SEC to crypto firms "makes it near impossible to know, <...> what is or is not a security in the crypto universe."
In the escalating debate over cryptocurrency regulation, Shark Tank investor Mark Cuban has become the latest person to express his disappointment with the US Securities and Exchange Commission (SEC).
Cuban shared a lengthy Twitter thread on June 11th, unveiling his viewpoint about the seemingly vague registration process for crypto businesses dictated by the SEC.
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Opening his critique, the billionaire entrepreneur revealed his frustrations, alleging the nonexistence of a registration process within the SEC's "Framework for 'Investment Contract' Analysis of Digital Assets."
According to Cuban, it complicates the understanding of what is considered security within the world of digital currencies. His remarks stated:
Unfortunately none of the elements presented in this page are part of the registration process. Which makes it near impossible to know, with or without an army of securities lawyers, what is or is not a security in the crypto universe.
Though the document doesn't offer a detailed walkthrough, it briefly explains what is expected from companies under the US federal securities laws. This includes mandatory disclosure of all the information critical for making "informed investment decisions" and other managerial efforts that determine the enterprise's success.
In contrast, Cuban draws attention to the fact that other financial sectors receive clear guidelines from the SEC.
The billionaire emphasized that instead of classifying "stock loans" as securities or litigating against brokers and banks, the SEC engages in a "comments process." He proposed a similar approach to the cryptocurrency sector to distinguish those that are securities from those that are not.
Adding fuel to the fire, the SEC filed lawsuits against Binance on June 5th and Coinbase on June 6th, accusing the crypto exchanges of violating numerous securities regulations. Notably, these included the allegation of offering cryptocurrencies that the regulator deems to be unregistered securities.
As it stands, the SEC currently classifies over 60 cryptocurrencies as securities.
Ultimately, this ongoing saga encapsulates the frustrations and legal dilemmas faced by cryptocurrency companies and stakeholders, prompting them to call for greater clarity and fairness from regulatory bodies.
