NewsletterBillionaire Mark Cuban Believes SECs Attack On Crypto Tokens Won’t Work
American billionaire and Shark Tank star Mark Cuban believes US SEC’s approach to target crypto tokens and labeling them as securities won’t work.
The US Securities and Exchange Commission is on a roll to label crypto tokens as securities as it continues to engage in a historic legal battle with Ripple and XRP. Earlier, the SEC sent a letter to Grayscale claiming Filecoin is a security.
The American billionaire tweeted that SEC approach to label Filecoin token as security won’t work. Not just Filecoin but any chain that releases its token can not be targeted like this.
Mark Cuban predicts what may come next for these tokens
The billionaire investor believes that what may come next for tokens is to release them all, leaving no treasury. “Take the receipts and use them to provide liquidity using defi to train the token , and then dissolve the original entity that releases the token,” he added. Mark Cuban thinks regulators can not do anything about the token issuers or the token once they are in circulation and their issuers close down the entity.
Twitter user @RSSH273 argued that dissolving the legal entity could make it marginally harder for regulators to bring an enforcement action, but could result in the individuals behind the project being directly liable, so has some real downside. “As there was no financial benefit to the originators , I don’t think there is anything the SEC could do or win if they did try to sue,” Cuban added.
US SEC continues to go after crypto tokens
Earlier, the US SEC sent a letter to Grayscale Investments claiming that Filecoin token qualifies as a security. The security commission is leaving no stones unturned to target the crypto industry.
SEC has already targeted crypto exchanges Kraken, Bittrex, and Coinbase for allegedly selling unregistered securities.
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