- Legendary investor criticized SEC rulemaking
- And token classification confusion
Billionaire Mark Cuban criticized current SEC claims about recognizing a number of tokens as securities. In his tweet, he provides a link to the agency’s documents. There they write at length about the Howey test and how it applies to tokens.
“Unfortunately, all these points on the document page are not part of the registration process.. That is, it is almost impossible to determine what is or is not a security in the cryptocurrency space. Even with the help of an army of securities lawyers.”
Cuban noted that in other areas the regulatory process is much more transparent. For example, they have no claims on stocks of brokers or banks. It clearly describes the algorithm for what counts as a security, and on what basis.
“The SEC should do the same with cryptocurrency. I think their difference in approach is symbolic of their intention to operate in one industry rather than another.”
The businessman concludes that the U.S. SEC has not provided cryptocurrency companies with a clear algorithm for registration. Investors and ordinary users are the first to be affected. Especially if crypto firms flee the U.S. to offshore.
In the past, Mark Cuban called gold investors fools. And advised to buy BTC.