Billionaire Mark Cuban expects SEC to impose registration rules on crypto “nightmare” – Regulation Bitcoin News

Billionaire Mark Cuban expects SEC to impose registration rules on crypto “nightmare” – Regulation Bitcoin News

Shark Tank star and owner of the NBA team Dallas Mavericks, Mark Cuban, has warned that the US Securities and Exchange Commission (SEC) will introduce rules for the registration of tokens that will be a “nightmare waiting for the crypto industry”.

Mark Cuban predicts SEC to pass “nightmare” crypto regulation

Billionaire Mark Cuban, the Shark Tank star who owns the NBA’s Dallas Mavericks, warned on Twitter on Saturday about how the SEC will regulate crypto tokens.

His warning was in response to a tweet by U.S. Sen. Pat Toomey (R-PA) that condemned the securities watchdog for its enforcement action against a former Coinbase employee where nine crypto tokens identified as securities. Coinbase fast contested allegation that he listed crypto securities.

Toomey noted that the enforcement action “is a perfect example of the SEC having a clear opinion on how and why certain tokens are classified as securities. However, the SEC did not disclose its view before initiating the enforcement action.”

Cuban, whose net worth is around $4.7 billion, believes the SEC will issue rules on how to register crypto tokens that will be a “nightmare” for the crypto industry. He replied to Toomey: “You think this is bad? Wait to see what they come up with for token registration. It’s a nightmare waiting for the crypto industry,” the Shark Tank star wrote. How else to keep thousands of lawyers employed and create reasons to demand more taxpayer money?”

Billionaire Mark Cuban expects SEC to impose registration rules on crypto “nightmare” – Regulation Bitcoin News

Cuban’s tweet includes a link to a Youtube video that he attempted to file a no-action letter with the SEC to ensure that the stock purchases he was about to make would not violate insider trading laws. However, the billionaire showed that the process is very complicated, stressing that he does not instill confidence in investors that he will not break the law. “What I discovered shocked even me,” Cuban wrote after going through the SEC-directed process.

“Most no-action letters describe the request, analyze the specific facts and circumstances involved, [and] discuss applicable laws and rules,” the SEC said on its website. If the no-action request is granted, “SEC staff would not recommend that the Commission take enforcement action against the requester based on the facts and statements described in the individual or entity’s request.”

Cuban has previously criticized the SEC for its enforcement-oriented approach to regulating the crypto sector.

In August, the owner of the Dallas Mavericks called out SEC Chairman Gary Gensler on his focus on “investor protection”. “If you work on behalf of investors, you make it easier for investors and business people to ask questions and get them answered. You make it almost impossible. Those [who] I can’t afford it, lawyers can only guess,” he emphasized.

SEC recently was under fire for the regulation of the crypto sector by enforcement. Last week, US Congressman Tom Emmer slammed SEC to “break up companies outside its jurisdiction”. He asserted: “Under Chairman Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, luring companies to ‘come in and talk’ with the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.

Do you agree with Mark Cuban? Let us know in the comments section below.

Billionaire Mark Cuban expects SEC to impose registration rules on crypto “nightmare” – Regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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