The Billionaire Investor Mark Cuban has become one of the latest industry figures to denounce the US securities regulator for failing to provide cryptocurrency companies with a clear registration process..
The Shark Tank Investor he claimed in a June 11 tweet that there is no record in the document of the SEC that serves as a “framework for the analysis of ‘investment contracts’ of digital assets”, which makes it “almost impossible to know” what constitutes a security in the “crypto-universe”.
“Unfortunately, none of the items presented on this page are part of the registration process. Which makes it almost impossible to know, with or without an army of securities lawyers, what is or is not a security in the crypto universe.”
This is a SEC WEB PAGE about the howey test and tokens that often conflicts with what @SEC_Enforcement you said publicly. It’s worth a read to get more clarity on what may or may not be a security
Unfortunately none of the elements presented in this… pic.twitter.com/kGHgsZkOaH
—Mark Cuban (@mcuban) June 11, 2023
This is a SEC WEB PAGE about howey testing and tokens which often conflicts with what @SEC_Enforcement has said publicly. Worth reading to get more clarity on what may or may not be a value
Unfortunately none of the items featured in this… pic.twitter.com/kGHgsZkOaH
Although a step-by-step outline is not provided, the document briefly explains what is required of companies under the federal securities laws of the United States.
The requirements include the need to disclose all information necessary for investors to make “informed investment decisions” and other “essential management efforts” that impact the success of the company..
For his part, Cuban noted that other sectors of the financial industry are receiving much more transparency from the SEC.. Instead of classifying “stock loans” as securities or suing brokers and banks, they are participating in a “comment process,” Cuban explained.
“They should do the same for cryptocurrencies in an effort to determine which aspects of cryptocurrencies are securities and which are not,” he added..
Here is the SEC calling the stock loan industry “opague” and requiring transparency. Note, they are not calling “stock loans” a security as they are trying to do with the loaning of crypto assets. Nor are they suing the Stock Loan Departments of brokers/banks. They are going… pic.twitter.com/GfWm3m1jOB
—Mark Cuban (@mcuban) June 9, 2023
Here the SEC is calling the securities lending industry “turn off” and demanding transparency. Please note: they are not calling “stock lending” a security, like they are trying to do with crypto asset lending. They are also not suing the Securities Lending Departments of the brokers/banks. They will… pic.twitter.com/GfWm3m1jOB
US Senator Cynthia Lummis has also criticized the regulator for not providing a “robust legal framework” or at least offering “legal guidance” in some way for companies to comply:
My statement on the SEC suing Coinbase, inc. pic.twitter.com/EgRIxrIcjj
— Senator Cynthia Lummis (@SenLummis) June 6, 2023
My statement on the SEC’s lawsuit against Coinbase, inc. pic.twitter.com/EgRIxrIcjj
Last week, SEC Chairman Gary Gensler, he claimed at the Global Exchange & Fintech Conference on June 8 that there is a registration process and that companies “know how to register”.
His comments were made in relation to recent claims by Coinbase and Robinhood that they attempted to sign up.but the SEC rejected the attempt.
The SEC sued Binance on June 5 and Coinbase on June 6, alleging that the exchanges violated various securities regulations.especially for offering cryptocurrencies that the regulator considers unregistered securities.
A total of 68 cryptocurrencies are considered securities by the SEC.
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