Billionaire Mark Cuban Calls For Legal Reshuffling Of Crypto Regulatory Framework

The famous billionaire investor Mark Cuban has called for the legal reshuffling of the crypto regulatory framework in the US. The billionaire expressed this idea through a series of posts on Twitter, sparking a flow of inputs.

Notably, the recent enforcement actions from the SEC formed the basis of the discussion that opened Cuban’s debate.

Mark Cuban Argues That Existing Crypto Regulatory Framework Needs Overhauling

In the Twitter debate, Cuban expressed his opinion by comparing the complexity of digital content law and urging different types of crypto tokens for potential law. 

According to the billionaire, the Securities and Exchange Commission (SEC) should operate a new system in that regard.

Cuban mentioned the need for a different registration approach for crypto assets with multiple functions by the SEC. 

He noted the importance of having a precedent that the law should fully back with just a look at the content. Following the recent tweet from the renowned billionaire investor, many opinions are coming into the discussion. 

The argument is hovering around the multifaceted potential of digital assets against the one-dimensional approach from the SEC. The latter opinion has become the predominant move by the regulator.

In his explanation, Cuban stated that it could be pretty challenging to unfold the clear intent of a buyer, seller, or investor of a multi-functional asset. 

He maintained that such ambiguity forms the primary reason for the SEC to provide a registration process specific for crypto assets and future multi-function digital tokens.

The Need For Proactiveness In Crypto Regulation According To Token Functions

The argument outlined the crypto market with some elements of complexity, proving its continuous degrees of rapid evolution.

So, the SEC should use an approach that implies proactiveness and clarity. Further, Cuban highlighted the recent case between the SEC and the US largest crypto exchange Coinbase. 

The billionaire stated that the regulatory measures from the SEC are laced with legal difficulties for most firms to remain compliant with the set rules.

The investor mentioned the stress on crypto startups in kicking off their operations as demanded by the existing laws. 

These include generating $10 million in funds, hiring a securities lawyer, and other detailed SEC processes.

Cuban mentioned that the SEC has not focused on the trading aspect of crypto assets through its regulatory measures. 

To him, such a situation in the current regulatory framework indicates a massive disconnection in the critical function and should be quickly corrected.

Recall that Cuban said the SEC has been ambiguous in its regulation during an argument with a former official of the SEC, John Reed Stark. 

The investor maintained that the SEC is gradually throwing crypto under the bus with its enforcement actions on the industry.