Mark Cuban Says It is Near Impossible to Determine Which Crypto is a Security
- Mark Cuban believes that the US SEC has failed to provide a clear path to regulation for crypto firms.
- He said that “without an army of securities lawyers,” it is impossible to determine which crypto asset is a security.
- The SEC recently labeled many coins like SOL, MATIC, AXS, ADA, etc. as securities in a lawsuit against Coinbase.
- Cuban noted that other financial industries are witnessing more transparency from the SEC.
Mark Cuban, the billionaire owner of the Dallas Mavericks and the backer of Ethereum scaling solution Polygon (MATIC), is one of the many people who have come out against the Securities and Exchange Commission (SEC) for its regulation by enforcement tactics against crypto companies. The agency’s chair, Gary Gensler, has stated multiple times that, except for Bitcoin (BTC), all the other crypto coins are securities.
The billionaire stated that the SEC has visibly failed to provide cryptocurrency firms with a clear registration process and has created regulatory uncertainty in the industry, driving blockchain businesses away from the US economy. Mark Cuban also pointed out that no registration exists in the SEC’s “Framework for ‘Investment Contract’ Analysis of Digital Assets” document via a June 11 tweet.
As reported earlier by Bitnation, the SEC sued the largest crypto exchange in the US, Coinbase, and in the suit, stated that multiple coins offered by the exchange are securities, including Solana (SOL), Polygon (MATIC), Axie Infinity (AXS), Chiliz (CHZ), Nexo (NEXO), Cardano (ADA), etc.
“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,” Cuban said.
A step-by-step outline isn’t provided by the SEC, but the document does briefly explain what is required for crypto firms that aim to comply with the laws of the land. The firms are required to disclose all information crucial for investors to make “informed investment decisions” and other “essential managerial efforts,” among other things.
Mark Cuban noted that other financial industries are witnessing more transparency from the SEC, and the billionaire explained that “stock loans” are not labeled as securities by the regulator, and rather than suing the brokers and banks, they’re engaging in a “comments process.”
“They should do the same thing with crypto as an effort to determine which aspects of crypto are securities and which are not,” said the Shark Tank investor.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
