Mark Cuban slams the US SEC for using unclear policies to regulate Bitcoin and the crypto industry, a move he says could negatively affect the market.
The US SEC (Securities and Exchange Commission) is known for its role in regulating financial markets, especially the stock market. Now, the federal institution seems to have shifted its gaze to the crypto industry, and the manner in which it’s dealing with the growing market is causing jitters among top businessmen like billionaire Mark Cuban.
Negative sentiments have come to light after SEC announced an investigation into claims of insider trading at Coinbase. Apparently, the former product manager at the exchange and his brother and friend are accused of buying cryptos just in time for the coin’s listing on the exchange. The move by SEC to charge the accused doesn’t seem to argue well with Senator Pat Toomey, who took to Twitter to air his frustrations. The senator bashed SEC for not disclosing its view on the tokens before it launched the enforcement action against the said manager. He feels that the institution should provide details on the tokens it considers securities that fall under its jurisdiction.
“Yesterday’s enforcement action is the perfect example of the SEC having a clear opinion on how and why certain tokens classify as securities. Yet the SEC failed to disclose their view before launching an enforcement action.”
Mark Cuban Chips In
Replying to the senator’s post, Mark Cuban was of the opinion that this was just the tip of the iceberg and that things were headed to the bad side for the crypto market. In his view, the SEC is just trying to keep its lawyers busy and make a case for more funds allocation.
Think this is bad? Wait till you see what they come up with for registration of tokens. That's the nightmare that's waiting for the crypto industry. How else do you keep thousands of lawyers employed and create reasons to ask for more taxpayer money? https://t.co/eoDAiyDxlR https://t.co/mjr9LxnDZB
— Mark Cuban (@mcuban) July 23, 2022
Is SEC Confused?
These issues, coupled with the SEC’s current battle with Ripple over XRP’s status, could be a sign that the SEC isn’t objective in its dealings in the crypto industry. As a matter of fact, Ripple seems to be headed for a clear win.
For years now, various crypto entities have called on SEC and the government to formulate clear regulatory frameworks for the crypto and blockchain industry. Still, the institutions involved don’t seem to be in a hurry to do so.
Granted, this is not the first time Mark Cuban has thrown a jab at SEC. Back in 2014, SEC accused Mark of insider trading. The case went to court, and Mark Cuban won.