Shark Tank investor Mark Cuban has said would be a “nightmare” if the US Securities and Exchange Commission (SEC) was to regulate cryptocurrency.
The billionaire who owns the Dallas Mavericks made a pointed tweet about the prospect of SEC taking the reins of crypto regulation, responding to a proposal by Senator Patrick Toomey.
Toomey said that a “regulation-by-enforcement approach” would be best for the cryptocurrency industry.
Toomey touched on the most recent case which named three individuals who have perpetuated fraud through Coinbase and against which SEC was now bringing criminal and civil charges.
He added that there was a very strong case for why cryptocurrencies should be securities. “Yesterday’s enforcement action is the perfect example of the SEC having a clear opinion on how and why certain tokens classify as securities”, Toomey said.
The senator seemed to recognize that this approach would also make it harder for innovators to pursue business ventures in the country.
Cuban said things are about to get much worse if SEC takes regulatory control of the crypto industry.
“Think this is bad? Wait till you see what they come up with for registration of tokens. That’s the nightmare that’s waiting for the crypto industry. How else do you keep thousands of lawyers employed and create reasons to ask for more taxpayer money”, he said
Meanwhile, SEC and Coinbase are at each other’s throats about whether coin listings are actual securities – something that the SEC contended from the early days of the industry.
Coinbase has made numerous rebuttals of this statement. Regulatory uncertainty continues to reign supreme in the US crypto space.
In the meantime, you can use your crypto to play for fun at sites such as Bitcasino, 1xBit and FortuneJack.