The billionaire Mark Cuban tweeted that the SEC will regulate crypto tokens. Cuban’s tweet responded to U.S. Senator Pat Toomey, slams the SEC for its enforcement action against a former Coinbase employee. In which nine crypto tokens were identified as securities. In response, Coinbase quickly denied listing crypto securities.
Toomey said the 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 assumes that the SEC will come up with rules to register crypto tokens as a “nightmare” for the crypto world. He said, “Think this is bad? Wait till you see what they come up with for the 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?”
No Action Letter
In his tweet, Mark Cuban included a link to a YouTube video where he attempts to submit a no-action letter to the SEC. Cuban wanted to ensure that the stock purchase he was going through would not go against insider trading laws. He explains that it is a somewhat hard process. Cuban wrote, “What I found shocked even me, after going through the process as directed by the SEC.”
On the SEC’s website, it is written, “Most no-action letters describe the request, analyze the particular facts and circumstances involved, [and] discuss applicable laws and rules, the SEC staff would not recommend that the Commission take enforcement action against the requester based on the facts and representations described in the individuals or entity’s request.”
Mark Cuban has previously chastised the SEC for focusing on enforcement regarding regulating the cryptocurrency sector. In addition, the SEC has recently come under criticism for using enforcement to regulate the crypto sector. The U.S. Congressman Tom Emmer also chastised the SEC last week for “cracking down on companies outside its jurisdiction, Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to ‘come in and talk’ to the Commission, then hitting them with enforcement actions, discouraging good – faith corporation.”