Coinspeaker
Billionaire Investor Mark Cuban Slams SEC for Unclear Regulations

Last week, the US Securities and Exchange Commission (SEC) slapped lawsuits on two major exchanges – Coinbase and Binance – over violations of federal securities laws. Some of the top personalities from the business and financial world have come in support of the crypto industry. Over the last weekend on Sunday, June 11, billionaire investor Mark Cuban called out the SEC for failing to provide enough clarity to crypto firms over the official registration process.

Mark Cuban has been one of the biggest investors in the crypto space and has invested in some of the top projects like Polygon.

The Shark Tank investor stated that the United States Securities and Exchange Commission’s document on the “Framework for ‘Investment Contract’ Analysis of Digital Assets” does not have any registration information. Mark Cuban stated that this lack of clarity makes it extremely difficult to determine what qualifies as a security in the world of cryptocurrencies. He added:

“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.”

Furthermore, Cuban also slammed the SEC for their differential treatment of the stock loans and the crypto loans industry. He added that it is important to note that the SEC isn’t considering “stock loans” as securities, however, they are attempting to categorize the lending of crypto assets as such.

Additionally, the regulators are not taking legal action against the Stock Loan Departments of brokers or banks; instead, they are going through a comments process. It would be beneficial if a similar approach were taken with cryptocurrencies, to carefully assess which aspects should be classified as securities and establish effective regulations to safeguard investors, added Cuban.

US Lawmakers Slams the SEC

US Senator Cynthia Lummis, popular for her crypto-friendly views has also slammed the SEC. She added that the securities regulator has failed to provide a clear path for crypto firms to register. Senator Lummis stated that the SEC also failed in providing adequate guidance and differentiation between a commodity and a security.

The Republican Senator from Wyoming added that the SEC’s stance on regulation by enforcement has continued to harm investors. She said that the SEC’s concern about consumer protections would require a real legal framework that the exchanges can comply with. Instead, the SEC’s actions have been pushing the industry players offshore, said Lummis. The Senator said that they are working on a regulatory framework that would allow individuals to trade digital assets in the US.

We successfully prevented @POTUS‘ 30% digital asset mining tax from being included in the debt ceiling deal but the fight is far from over.

I am working on a regulatory framework that will allow individuals and companies to own and trade digital assets in America.

Stay tuned…

— Senator Cynthia Lummis (@SenLummis) June 10, 2023

The SEC’s control over the crypto market continues to grow over the last year. In 2022, the US SEC’s total assets grew by $1.9 billion to reach $14.1 billion, and accounts receivable increased by $1.5 billion, mostly from confiscated income. During that year, the SEC initiated 760 enforcement actions, marking a 9% rise from the previous year. Out of these, 462 were new or “independent” actions, resulting in ordered payments of $6.439 billion, the highest in SEC history, compared to $3.852 billion in 2021.next

Billionaire Investor Mark Cuban Slams SEC for Unclear Regulations