Mark Cuban is a billionaire and a successful entrepreneur as well. He’s one of the original creators of Shark Tank and known for his support of Bitcoin and cryptocurrencies. Cuban has constantly criticized the government for its approach to the crypto sector regulation. He’s been vocal on a lot of other things too, and his latest tweet is a warning of bleaker times. In times of global adoption of Bitcoin, it seems that the USA is doing its best of going in the other direction.
As you may already know, the SEC is moving to regulate the crypto sector, but no one knows how. The industry certainly needs regulation, but if the rules are corrupt, no one’s going to be happy with it. Cuban, whose wealth is supposedly closing in on $5 billion, says that this is just the beginning. He claims that the SEC will mess up the regulations for token registration, essentially turning the law into a nightmare for the crypto industry.
A Tweet in Response to Senator Pat Toomey
Senator Pat Toomey recently slammed the SEC for enforcing action against a former Coinbase employee. Nine crypto tokens were identified as securities in that case, but Coinbase immediately dispersed any allegations that it lists crypto securities at all. Toomey noted that the SEC was pretty clear on what it thinks about coins in that case, but slammed then for not disclosing their views before launching action earlier.
In a response to that tweet, Cuban was even more livid. He said that if Toomey thinks this is bad, he should ‘wait and see’ what the SEC comes up with for token registration. He called it a nightmare in the wait for the crypto industry, and also mentioned that’s how they’ll keep thousands of lawyers in the business.
The link also included a video of Cuban himself trying to submit a no-action letter to the SEC related to a stock purchase. He wanted to make sure he’s not violating any insider trading laws, but the whole process was highly complicated, and, as Cuban put it, it doesn’t give investors confidence. He said that what he found shocked him, but he believes the SEC will further mess up the impending crypto regulations.
Not the First Time Cuban Criticizes the SEC
This isn’t the first and probably not the last time Cuban criticized the SEC. He previously bashed them for taking an approach that’s mostly enforcement-centric. In August, he called out SEC Chairman Gary Gensler for focusing on investor protection. He said that if Gensler really worked on investor protection, he would have made it for investors to ask questions and get proper answers.
In recent months, the SEC was heavily criticized by just about everyone for its enforcement-based approach to crypto sector regulation. Congressman Tom Emmer was one of the first to bash the securities watchdog. He said that Gensler makes the SEC a ‘power-hungry’ regulator, hitting companies with enforcement after sweet talking them into a meeting with the Commission.
It’s a rude gesture for sure, and with the impending crypto sector regulation, everyone should heed Mark Cuban’s words.