American billionaire and reality TV star Shark Tank offered a way for cryptocurrency issuers to avoid SEC harassment.
Mark Cuban believes that cryptocurrency issuers could immediately issue their assets and use them to provide liquidity through decentralized finance (DeFi), but then it’s worth dissolving the original entities that issued the crypto assets.
Cuban is confident that this will ensure true decentralization, and regulators won’t be able to do anything about token issuers or their crypto-assets in circulation.
In this case, no financial benefit will be seen for cryptocurrency creators, and the SEC will be powerless, even if it sues the issuer.
The businessman made the suggestion in a comment on a tweet where a user criticized the U.S. SEC for taking enforcement action against cryptocurrency companies.
Particular criticism concerned the SEC’s recent announcement that Filecoin cryptocurrency could be considered a security.
The agency called on Grayscale to withdraw its application to launch the Filecoin Trust. However, many users questioned Kuban’s idea.
The dissolution of a legal entity may indeed make it difficult for regulators to take enforcement action, but the individuals behind a cryptocurrency project should still be held directly responsible for it.
Mark Cuban is considered a strong supporter of cryptocurrencies. Last year he said that even the fiasco of the cryptocurrency exchange FTX can not prevent the prosperity of the industry.
The billionaire is also convinced that investing in bitcoin is much more profitable than investing in precious metals.