Billionaire Mark Cuban has entered the SEC securities fallout and has called out the US regulator for not laying out a definite registration process for crypto firms.
The owner of the Dallas Mavericks tweeted yesterday that that there is no registration in the SEC’s “Framework for ‘Investment Contract’ Analysis of Digital Assets” document, which makes it “near impossible to know” what actually makes a security.
He stated: “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.”
Although an intricate guide isn’t detailed, the pages do go into what is required for companies needing compliance on US securities laws.
Requirements include disclosing all sufficient details for investors to make “informed investment decisions” and other “essential managerial efforts” that affect a firm’s performance.
Cuban also pointed out that other players in the finance industry get far more added SEC guidance. Instead of calling “stock loans” securities or cracking down on banks, they’re carrying out a “comments process”, Cuban mused.
He added: “They should do the same thing with crypto as an effort to determine which aspects of crypto are securities and which are not.”
