Mark Cuban, the owner of the NBA team Dallas Mavericks and Shark Tank star, has warned that the rules pertaining to the crypto space from the SEC would be nothing less than a ‘nightmare’.
As there has been a lot of talk about the US Securities and Exchange Commission (SEC) developing rules for regulating cryptocurrencies, billionaire Mark Cuban also shared his take on the matter.
His warning came in response from a tweet by Pat Toomey, a Republican US Senator, who had recently slammed the securities regulator over the enforcement action they had taken against a former Coinbase employee.
The SEC had identified nine crypto tokens as securities, but Coinbase had been quick to dispute this allegation from the authority.
Toomey said in his tweet that the SEC’s enforcement action shows that they are aware of how certain tokens can be classified as securities, yet he said that they had not disclosed their view.
‘Nightmare’ crypto rules
Having a net worth of about $4.7 billion, Cuban said that the rules for registration of crypto tokens that the SEC will develop will be nothing less than a nightmare for the entire industry.
He responded to Toomey and said that the worst was yet to come for the crypto industry in the form of crypto registration rules that would be introduced.
The Shark Tank star said that this is how thousands of lawyers would be able to keep their jobs and more of the taxpayer’s money would be used.
The tweet from Cuban also included a YouTube video in which he was trying to submit a no-action letter to the SEC for ensuring that one of his stock purchases would not be in violation of insider trading laws.
However, the purpose of the video was to demonstrate the complexity of the process, showing that it does not give confidence to investors that they are not breaking the law.
After going through the process outlined by the SEC, Cuban said that he had been shocked.
This is not the first time that Cuban has been frustrated with the enforcement-centric approach that the SEC takes when it comes to crypto regulation.
He has previously criticized the regulator for the same. Back in August, he called out Gary Gensler, the chairman of the SEC, for his focus on ‘investor protection’.
He said that if he were truly working on behalf of the investors, he would make it easy for them to ask questions and get answers.
Instead, he said that the process is almost impossible and people who cannot afford to hire lawyers are left guessing.
The SEC had recently drawn a lot of criticism for using enforcement for regulating the crypto industry. Tom Emmer, a US Congressman, had also slammed the authority last month.
He said that the securities regulator was taking action against entities that were operating outside of its jurisdiction. He added that Gary Gensler had made the SEC a power-hungry institution, as he had politicized enforcement and baited companies.