The SEC is currently under fire from critics. For his part, billionaire investor Mark Cuban is denouncing the US SEC for the lack of a clear registration process for crypto businesses. This raises concerns about regulatory transparency.
The lack of clarity from the SEC on the registration of crypto companies
Mark Cuban is a well-known personality within the cryptosphere. Like many other experts, he points the finger at the SEC for his lack of clarity in the crypto business registration process.
“The SEC’s Framework for Investment Contract Analysis of Digital Assets document lacks clear registration procedures, making it nearly impossible to know what constitutes security in the crypto space”
According to Mark Cuban, none of the elements presented in this famous document are part of the registration process. Result: it is today difficult to determine what is or is not a security in the field of cryptoassets.
Call for increased transparency and regulatory clarification
In another tweet, Mark Cuban criticizes the lack of transparency of the SEC compared to other sectors of the financial industry. While other industries enjoy great transparency through a commentary process, the SEC continues to label “equity loans” as securities. Which explains complaints filed against several brokers and banks.
According to Cuban, the SEC should take the same approach for crypto. The aim would then be to determine which characteristics fall under transferable securities and which do not.
Cynthia Lummis is also among those who disapprove of the SEC’s anti-crypto movement. According to the American senator, the American regulator should propose a solid legal framework or at least legal guidanceenabling businesses to comply with the rules. This criticism comes after claims by the two crypto platforms (Coinbase and Robinhood) that they attempted to register, but the SEC denied their request.
The SEC’s lack of a clear registration process for crypto businesses sparks concerns within the cryptosphere. Everyone agrees: the crypto sector urgently needs regulatory clarity!
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