Mark Cuban predicts that the SEC will work out a nightmare regulation on cryptocurrencies

Shark Tank star and NBA Dallas Mavericks owner Mark Cuban has warned that the US Securities and Exchange Commission (SEC) will work out registration rules for the tokens that will be “the nightmare that awaits the cryptocurrency industry“.

Billionaire Mark Cuban warned on Saturday in a tweet about how the SEC will regulate cryptocurrencies. The warning from him was in response to a tweet from US Senator Pat Toomey criticizing the SEC for its executive action against a former Coinbase employee in which nine cryptocurrency tokens have been identified as stocks. Coinbase quickly challenged the claim of listing cryptocurrencies.

Pat Toomey noted that the executive action “is the 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 opinion before filing an enforcement action.

Mark Cuban, whose fortune is $ 4.7 billion, thinks the SEC will work out rules on how to register crypto tokens that will be a “nightmare”For the cryptocurrency industry. He replied to Toomey: “Do you think it’s bad? Wait to see what they offer for token registration. This is the nightmare that awaits the cryptocurrency industry“, Wrote the billionaire. “How else can we keep thousands of lawyers busy and create reasons to ask taxpayers for more money?

Cuban’s tweet includes a link to a SEC video on Youtube in which he is seen attempting to send a letter of no action to the SEC to ensure that a stock purchase he is about to make does not violate insider trading laws. However, the billionaire has shown that the process is very complicated, pointing out that it does not give investors the certainty that they will not break the law. “What I found even shocked me“Wrote Mark Cuban after following the process required by the SEC.

Most of the letters of non-action describe the request, analyze the particular facts and circumstances involved, [et] discuss applicable laws and rules“, The SEC said on its website. If the request for non-action is granted, “SEC staff will 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.

Cuban previously criticized the SEC for taking an approach focused on enforcing regulation of the cryptocurrency industry.

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