The billionaire is the latest to argue that the United States Securities and Exchange Commission hasn’t provided crypto firms with a registration process to follow.
Billionaire investor Mark Cuban has become one of the latest industry figures to call out the United States securities regulator for purportedly failing to provide cryptocurrency firms with a clear registration process.
The Shark Tank investor claimed in a June 11 tweet that no registration exists in the United States Securities and Exchange Commission’s “Framework for ‘Investment Contract’ Analysis of Digital Assets” document, making it “near impossible to know” what constitutes a security in the “crypto universe.”
“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.”
While a step-by-step outline isn’t provided, the document does briefly explain what is required for firms pursuant to U.S. federal securities laws.
Among the requirements included the need to disclose all information necessary for investors to make “informed investment decisions” and other “essential managerial efforts” that impact the success of the enterprise.
Meanwhile, Cuban noted that other sectors in the finance industry are receiving much more transparency from the SEC. Rather than labeling “stock loans” as securities or suing brokers and banks, they’re engaging in a “comments process,” Cuban explained.
“They should do the same thing with crypto as an effort to determine which aspects of crypto are securities and which are not,” he added.
U.S. Senator Cynthia Lummis has also lashed out at the regulator for failing to provide a “robust legal framework” or at least offer “legal guidance” in some form for firms to comply with:
Last week, SEC Chair Gary Gensler claimed at the Global Exchange & Fintech Conference on June 8 that a registration process exists and that firms “know how to register.”
His comments were made in relation to Coinbase and Robinhood’s recent claims that they tried to register but the SEC rejected the attempt.
The SEC sued Binance on June 5 and Coinbase on June 6, alleging the exchanges broke various securities rules, most notably for purportedly offering cryptocurrencies that the regulator considers to be unregistered securities.
A total of 68 cryptocurrencies are now considered to be securities by the SEC.