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Mark Cuban criticizes SEC’s impact on US crypto token releases
Billionaire investor Mark Cuban has openly condemned the work of the US Securities and Exchange Commission (SEC) regarding cryptographic regulations, and in particular in token releases.
Cuban vented on X detailing the problems with the registration process, which is too complicated and is killing legitimate crypto companies. According to Cubano, the SEC’s approach makes compliance nearly impossible for the entrepreneur, thus impeding innovation and pushing companies out of the US market.
Cubano criticizes the SEC’s regulatory approach
In a series of posts on X, Mark Cuban criticized the SEC chairman Gary Gensler and the regulatory body’s current attitude towards cryptocurrency regulations. According to Cuban, registering a token release could take hundreds of hours for securities lawyers due to the lengthy negotiations required with the SEC, but approval is still unlikely.
He argued that the SEC should streamline the application process to allow any business owner to apply. However, they have yet to change the rules, but they have made it almost impossible to follow the existing ones.
Cubano said:
“They have had enough experience; they could change the application process so that any business owner can complete the registration process easily. But they won’t. They know it’s almost impossible for the process to work as it is.”
He also accused the SEC of intentionally creating a destructive environment for the cryptocurrency industry, which makes it nearly impossible for good companies to operate legally. Cuban also pointed out that the high costs and long duration of the registration process cause companies to refrain from such attempts, pushing them to operate outside the United States or avoid the country altogether.
Requires legislative action and CFTC involvement
Cuba’s complaints were aimed at the SEC and the overall regulatory issues faced by the cryptocurrency industry in the United States. He had previously urged Congress to develop legislative measures that would establish clear regulatory guidelines specifically designed for the cryptocurrency industry.
Cuban proposed that the Commodity Futures Trading Commission (CFTC) should become the body that regulates cryptocurrencies, taking it away from the SEC so that there is better oversight.
He highlighted the growing power of the crypto-voting population, especially among young people and independents, noting that their ignored needs could cause quite a stir in future elections. Cuban warned that the SEC’s current approach stifles innovation and does not protect investors’ interests; therefore, it could have broader policy implications.
Growing criticism of the SEC and its impact on the industry
Cuban’s statement is one of many in a significant wave of criticism from industry advocates that the SEC’s regulatory approach harms the cryptocurrency industry. Over the past year, the SEC has sued some of the largest cryptocurrency exchanges, including Coinbase, Binanceand Kraken, on the stock status of their listed businesses.
Such acts have created enormous confusion and discussion in the industry, particularly regarding the determination of Ethereum (ETH), Cardano (ADA), Solana (SOL), and Polygon (MATIC) asset types.
Regulatory uncertainty has also influenced the likelihood of this happening Spot ETF on Ethereum approval, with some industry players questioning the SEC’s willingness to approve such products.
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