Mark Cuban has issued a warning that the SEC’s proposed requirements for token registration will be “the nightmare that’s waiting for the crypto industry.”
He issued the warning in reaction to a tweet from U.S. Senator Pat Toomey (R-PA), who criticized the securities watchdog for taking enforcement action against a former employee of Coinbase after nine cryptocurrency tokens were classified as securities. The claim that Coinbase listed crypto securities was swiftly denied.
The enforcement action, according to Toomey, “is the perfect example of the SEC having a clear opinion on how and why specific tokens classify as securities. However, the SEC did not express its opinion before taking enforcement action.”
For the crypto business, the SEC‘s proposed guidelines on how to register crypto tokens will be a “nightmare,” according to Cuban, whose net worth is estimated to be $4.7 billion. Toomey received his response, “Think this is bad? Wait till you see what they come up with for token registration. The crypto sector is in for a nightmare,” the Shark Tank participant stated. “How else would you maintain the employment of thousands of attorneys and find justifications for requesting more tax dollars?”
A YouTube video of Cuban attempting to file a no-action letter to the SEC in order to assure that a stock purchase he is about to make would not break insider trading regulations is linked to in the businessman’s tweet. The billionaire, who emphasized that it does not give investors trust that they will not break the law, however, showed how difficult the procedure is. After following the SEC’s instructions, Cuban writes, “What I found shocked even me.”