Billionaire investor Mark Cuban criticized the United States Securities and Exchange Commission (SEC) for lacking a clear registration process for cryptocurrency firms. In a tweet on June 11, Cuban pointed out that the SEC’s “Framework for ‘Investment Contract’ Analysis of Digital Assets” document does not provide a step-by-step registration process, making it difficult to determine what constitutes a security in the crypto space.
Cuban highlighted that other sectors in finance receive more transparency from the SEC, suggesting that the agency should engage in a similar “comments process” for crypto to determine which aspects are securities and which are not.
U.S. Senator Cynthia Lummis also criticized the SEC for not providing a robust legal framework or clear guidance for firms to comply with.
SEC Chair Gary Gensler claimed that a registration process exists and that firms know how to register. However, Coinbase and Robinhood recently stated that their attempts to register were rejected by the SEC.
The SEC has filed lawsuits against Binance and Coinbase, alleging that they violated securities rules by offering unregistered cryptocurrencies. Currently, the SEC considers 68 cryptocurrencies to be securities.
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