A Shark Tank investor is deeply concerned about how the impending wave of regulation will affect the cryptocurrency space.
In a new post, billionaire Mark Cuban recount his 8.7 million Twitter followers that in light of a recent U.S. Securities and Exchange Commission (SEC) lawsuit alleging insider trading by a Coinbase employee, he anticipates even more compliance and enforcement issues.
“Do you think that’s bad?” Wait to see what they offer for token registration. This is the nightmare that awaits the crypto industry.
Otherwise, how do you keep thousands of lawyers employed and create reasons to ask taxpayers for more money? »
Cuban includes a link on a 2014 YouTube video he posted demonstrating how he encountered confusing, incomplete, and outdated information while trying to interact with the SEC in an effort to invest in a public company without violating insider laws .
Last weekend it was reported popular US crypto exchange Coinbase has alerted authorities to alleged insider trading by one of its employees. Former product manager Ishan Wahi reportedly told his brother and a friend about upcoming Coinbase digital asset listings in advance, which allowed them to take advantage of the information.
At that time, the news also broken that the SEC was reviewing Coinbase to determine whether nine of its digital offerings qualified as unregistered securities.
Pennsylvania Republican Senator Pat Toomey also took to Twitter to criticize the SEC’s methods, noting that the agency classifies certain crypto tokens as securities in legal actions without first establishing clear policies and definitions on paper.
While stating that anyone who breaks the law should in fact be punished, Toomey warns,
“The SEC’s approach to regulation-by-enforcement of digital assets poses a serious challenge to any well-meaning innovator striving to comply with applicable laws and regulations.
Providing regulatory clarity before enforcement would benefit regulators and investors. »
Mark Cuban also previously commented on the potential need for regulation of stablecoins, which are altcoins designed to be pegged to the value of more stable currencies like the US dollar.
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