Shark Tank star and NBA Dallas Mavericks owner Mark Cuban has warned that the United States Securities and Exchange Commission (SEC) will come up with token registration rules that will be “the nightmare that awaits the crypto industry“.
Billionaire Mark Cuban warned in a tweet Saturday about how the SEC will regulate crypto-assets. His warning was in response to a tweet from U.S. Senator Pat Toomey denying the SEC for its enforcement action against a former Coinbase employee where nine cryptocurrency tokens were identified as securities. Coinbase quickly disputed the claim that it listed cryptocurrencies.
Pat Toomey noted that enforcement action “is the perfect example of the SEC having a clear opinion on how and why certain tokens rank as securities. Yet the SEC failed to disclose its opinion before initiating enforcement action.”
Mark Cuban, whose fortune is $4.7 billion, thinks the SEC will come up with rules on how to register crypto tokens that will be a “nightmare” for the crypto industry. He replied to Toomey: “You think that’s bad? Wait to see what they offer for token registration. This is the nightmare that awaits the crypto industry“, writes the billionaire. “How else can we keep thousands of lawyers employed and create reasons to ask taxpayers for more money?”
You think that’s bad? Wait to see what they offer for token registration. This is the nightmare that awaits the crypto industry. Otherwise, how do you keep thousands of lawyers employed and create reasons to ask taxpayers for more money? https://t.co/eoDAiyDxlR https://t.co/mjr9LxnDZB
— Marc Cuban (@mcuban) July 23, 2022
Cuban’s tweet includes a link to an SEC video on Youtube in which he is seen attempting to submit a no-action letter to the SEC to ensure that a stock purchase he is on the point to perform will not violate insider trading laws. However, the billionaire has demonstrated that the process is very complicated, showing that it does not give investors the assurance that they will not break the law. “What I found even shocked mewrote Mark Cuban after going through the process requested by the SEC.
“Most generous no-action letters request it, analyzing the particular facts and circumstances involved, [et] discuss applicable laws and rules,” the SEC said on its website. If the request for no action is granted, “SEC staff do not recommend that the Commission take enforcement action against the petitioner based on the facts and representations described in the individual or entity’s petition.”
Cuba previously reviewed the SEC for taking an enforcement-centric approach to regulating the crypto sector.