Regulation
Mark Cuban Slams SEC Impact on US Versions of Crypto Tokens
Billionaire investor Mark Cuban has openly condemned the work of the United States Securities and Exchange Commission (SECOND) regarding crypto regulations, and especially in token releases.
Cuban spoke out on X detailing the problems with the registration process, which is too complicated and is killing legitimate crypto businesses. According to Cuban, the SEC’s approach makes compliance almost impossible for the entrepreneur, thereby preventing innovation and driving companies out of the U.S. market.
Cuban criticizes SEC’s regulatory approach
In a series of X messages, Mark Cuban criticized the chairman of the SEC Gary Gensler and the current attitude of the regulator towards the regulation of cryptocurrencies. According to Cuban, filing a token release can take securities lawyers hundreds of hours because of the extensive negotiations required with the SEC, but approval is still unlikely.
He argued that the SEC should streamline the application process to allow any entrepreneur to apply. However, they still need to change the rules, but have made it almost impossible to follow the existing ones.
Cuban said:
“They have had enough experience; they could modify the application process so that any entrepreneur can easily complete the registration process. But they won’t. They know that it is almost impossible for the process to work as is.
He also accused the SEC of deliberately creating a destructive environment for the crypto industry, making it nearly impossible for good companies to operate legally. Cuban also pointed out that the high costs and length of the registration process encourage companies to refrain from such attempts, prompting them to operate outside the United States or even avoid the country.
Calls for legislative action and CFTC involvement
Cuba’s complaints targeted the SEC and general regulatory issues faced by the crypto industry in the United States. He previously urged Congress to develop legislation that would establish clear regulatory guidelines specifically designed for the crypto industry.
Cuban proposed that the Commodity Futures Trading Commission (CFTC) should become the body that regulates cryptocurrencies, taking that away from the SEC so there is better oversight.
He highlighted the growing power of the cryptocurrency voting population, especially among young people and independents, pointing out that their ignored needs could cause a lot of noise in the upcoming elections. Cuban warned that the current approach taken by the SEC suppresses innovation and does not protect investors’ interests; this could therefore have broader policy implications.
Growing Criticism of the SEC and Impact on Industry
Cuba’s statement is just one of many criticisms from industry advocates that the SEC’s enforcement-by-regulation approach is harming the cryptocurrency industry. Last year, the SEC sued some of the largest cryptocurrency exchanges, including Coinbase, Binanceand Kraken, on the title status of their listed assets.
Such acts have created enormous confusion and disputes in the industry, especially regarding the determination of Ethereum (ETH), Cardano (ADA), Solana (SOL), and Polygon (MATIC) asset types.
Regulatory uncertainty also influenced the likelihood of Ethereum Spot ETF approval, with some industry practitioners questioning the SEC’s willingness to approve such products.
Read also: Bitcoin Price Could Plunge to $52,000, Analyst Predicts