Shark Tank star and owner of the NBA team Dallas Mavericks, Mark Cuban, says the US Securities and Exchange Commission (SEC) is “a nightmare waiting for the crypto industry” with its token registration He warns that the rules will be put in place.
Mark Cuban foresees the SEC coming up with “nightmare” crypto regulations
Billionaire Mark Cuban, the Shark Tank star who owns the NBA team Dallas Mavericks, warned in a tweet Saturday about how the SEC will regulate crypto tokens.
His warning was in response to a tweet by U.S. Senator Pat Toomey (R-PA), who blasted the securities watchdog over enforcement action against a former Coinbase employee who identified nine crypto tokens as securities. Coinbase immediately disputed allegations that it 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 failed to disclose its views before initiating the enforcement action.”
Cuban, whose net worth is about $4.7 billion, believes the SEC will come up with rules on how to register crypto tokens, which would be a “nightmare” for the crypto industry. He replied to Toomy: “You think this is bad? Wait until you see what they come up with about registering tokens. That is the nightmare that awaits the crypto industry,” the Shark Tank star wrote. How else will they continue to employ thousands of lawyers and create reasons to seek more taxpayer money?”
Cuban’s tweet included a link toThe tweet includes a link to a Youtube videoin which he attempts to file a no-action letter with the SEC to ensure that his upcoming stock purchase does not violate insider trading laws. However, the billionaire emphasized that this process is very complicated and does not give investors confidence that they will not break the law. Cuban wrote that after following the SEC’s instructions, “What I found shocked even myself.”
“Most no-action letters explain the request, analyze the particular facts and circumstances involved, and (among other things) discuss applicable laws and regulations,” the SEC states on its website. If a no-action request is granted, “the SEC staff will not recommend that the Commission take enforcement action against the requestor based on the facts and representations set forth in the individual or corporate request.”
Cuban has previously criticized the SEC for taking an enforcement-centric approach to regulating the crypto sector.
In August, the Dallas Mavericks owner called out SEC Chairman Gary Gensler’s emphasis on “investor protection.” He said, “If you worked for investors, you make it easier for investors and businessmen to ask and answer questions . But you make it next to impossible. Those who can’t afford lawyers can only guess,” he stressed.
The SEC was recently accused of regulating the crypto sector through enforcement. Last week, U.S. Congressman Tom Emmer also accused the SEC of “policing companies outside its jurisdiction.” He argued that ” Under Chairman Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to “come in and talk” to the Commission, hitting them with enforcement actions, and discouraging good-faith cooperation.”
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