Home
News
- 1 Mark Cuban recently commented that with all the regulations it is difficult to determine what is security and what is not.
- 2 Senator Cynthia Lummis also supported him by alleging SEC failed to provide legal guidance.
- 3 Currently, SEC recognizes 68 cryptocurrencies as securities.
Billionaire investor Mark Cuban comments that it is nearly impossible to determine what qualifies as a security and what does not. He further states that SEC fails to provide a clear registration route to cryptocurrency startups.
Mark Cuban And Cynthia Lummins Criticizing SEC
One of the most recent industry leaders to criticize the US securities regulator. The criticism was directed at the alleged neglect of providing cryptocurrency startups with a clear registration route, according to billionaire investor Mark Cuban.
“In a tweet on June 11, the Shark Tank investor asserted that it is ‘nearly impossible to know’ what qualifies as a security in the crypto universe, as there is no registration in the ‘Framework for ‘Investment Contract’ Analysis of Digital Assets’ document of the United States Securities and Exchange Commission.”
Mark Cuban mentioned in his tweet that none of the items on this page is involved in the registration process. Which makes it nearly hard to identify what is or is not a security in the crypto realm, with or without an army of securities lawyers.
The booklet does briefly clarify what is expected of firms per U.S. federal securities regulations. Although a step-by-step plan is not supplied.
It was vital to provide all information required for investors regarding the criteria of cryptocurrency to be considered as security to make “informed investment decisions”. Also, the information is vital to make other “essential managerial efforts” that have an impact on the enterprise’s success.
Mark Cuban also pointed out that the SEC has increased transparency in other financial industry sectors. As opposed to classifying “stock loans” as securities or suing brokers and banks, they are instead participating in a “comments process,” according to Mark Cuban.
To ascertain which elements of cryptocurrency are securities and which are not, he continued, ” Mark Cuban suggests SEC should do the same thing with crypto. Senator Cynthia Lummis of the United States has also criticized the regulator. She criticized it for failing to give businesses “legal guidance” or even just a “robust legal framework” to follow.
At the Global Exchange & Fintech Conference last week, SEC Chair Gary Gensler commented on the matter. He asserted that there is a registration procedure and that businesses “know how to register.” His remarks were in response to recent assertions made by Coinbase and Robinhood. They asserted that they attempted to register but the SEC denied their application.
On June 5 and June 6, the SEC filed lawsuits against Binance and Coinbase, respectively. SEC alleged that the exchanges had violated many securities laws. Most notably violated the laws by allegedly providing cryptocurrencies. They provided cryptocurrencies that the regulator deemed unregistered securities. The SEC now classifies a total of 68 cryptocurrencies as securities.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
