Nightmare Waiting For Crypto Industry: Shark Tank's Mark Cuban On US SEC Regulations

The US SEC last week announced insider trading charges against a former Coinbase product manager.

Mark Cuban has always been a strong supporter of crypto.

Source : Getty

Mark Cuban, the billionaire investor and ‘Shark Tank’ star, tweeted that the US Securities and Exchange Commission (SEC) will come up with regulations that will pose a ‘nightmare’ for the crypto industry. Cuban has always been a strong supporter of crypto. Even his NBA team, Dallas Mavericks, was one of the first major sports organisations to start accepting Dogecoin (DOGE) for tickets and official merchandise back in March 2021. The SEC recently brought insider trading charges against a former product manager at Coinbase, which led to Cuban’s recent comment.

On July 22, the SEC announced insider trading charges against a former Coinbase product manager, his brother, and his friend for “for perpetrating a scheme to trade ahead of multiple announcements regarding certain crypto assets that would be made available for trading on the Coinbase platform.”

ALSO SEE: Crypto Insider Trading: Two Indian Brothers, Their Indian-American Friend Charged In US In First Case Of Its Kind

Quoting this, US Senator Pat Toomey tweeted on July 23 that the SEC “failed to disclose their view” on why some tokens classify as 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. Yet the SEC failed to disclose their view before launching an enforcement action. https://t.co/UBMNrDu0pV

— Senator Pat Toomey (@SenToomey) July 22, 2022

Cuban retweeted Toomey’s post, saying, “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.”

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? https://t.co/eoDAiyDxlR https://t.co/mjr9LxnDZB

— Mark Cuban (@mcuban) July 23, 2022

The SEC’s scrutiny of Coinbase reportedly saw an increase since the exchange expanded its number of tokens being offered. The Federal agency alleged that Coinbase had listed nine unregistered securities as regular crypto tokens — AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. As per an emailed response to Reuters, a Coinbase spokesperson claimed that the company doesn’t list securities.

ALSO SEE: Coinbase Faces US SEC Probe Over Improper Crypto Listings: Report

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