No clear rules: Crypto bull Mark Cuban criticizes US Securities and Exchange Commission: “SEC is incredibly hypocritical” | news

• Mark Cuban known as the cryto bull
• Star investor criticizes the US stock exchange regulator
• The SEC wants to enforce its own regulatory agenda “through litigation.”

In an interview in early August, American entrepreneur and self-made billionaire Mark Cuban spoke with the operators of the YouTube channel Altcoin Daily, Aaron and Austin Arnold, about cryptocurrencies in general, altcoin investments, Bitcoin, Ethereum, Ripple & Co. ., but also about the American stock exchange supervisory authority Securities and Exchange Commission (SEC) and their handling of cryptocurrencies.


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Cuban calls SEC ‘hypocritical’

Cuban was visibly unhappy with the US Securities and Exchange Commission. “The SEC is incredibly hypocritical,” said the star investor from the US show “Shark Tank”. Cuban criticizes that the SEC wants to classify a large portion of cryptocurrencies as “securities” and thus place them under its supervision, and does not accept the investor protection argument that has been brought up again and again. “When the SEC says they want to protect investors from crypto, they can’t even provide the protection in the area that they are actually responsible for,” the crypto bull explains in an interview, referring to risky investments like “Pink Sheets” or “penny stocks”, for which the US Securities and Exchange Commission offers no special protection or intervention to investors. “There is no protection for anyone, anywhere from the SEC,” and these investments already fell under the jurisdiction of the US Securities and Exchange Commission.

Legal disputes instead of clear rules

The crypto bull also criticizes the approach of the US regulators. For example, Bloomberg recently reported, citing three people familiar with the matter, that the SEC has launched an investigation into US crypto exchange Coinbase for selling unregistered securities to US citizens. Should the tokens offered by Coinbase actually be classified as securities, it would require the trading platform to register as an exchange with the SEC.

In December 2020, the US Securities and Exchange Commission also filed a lawsuit against Ripple because the company is said to have raised $1.3 billion using an unregistered securities offering. After a year and a half of litigation, there was still no decision in April this year – but a partial success for the SEC, which was granted an extension of the deadline for taking evidence.

According to Cuban, the US Securities and Exchange Commission would rather try to enforce its own regulatory agenda “through legal disputes” than create clear rules. Coinbase also recently responded to the SEC investigation in a blog post, criticizing the US SEC for not seeking dialogue but going straight to litigation, noting that the US “does not have a clear or workable regulatory framework for digital assets”. “And instead of creating tailored rules in an inclusive and transparent way, the SEC is relying on this type of one-off enforcement to try to bring all digital assets under its jurisdiction, even those assets that aren’t securities,” Coinbase said. Meanwhile, the crypto trading platform has filed a rulemaking request with the SEC to give the crypto securities market a chance to develop, the company said in its blog post.


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