News

Billionaire Mark Cuban Believes SECs Attack On Crypto Tokens Won’t Work

American billionaire Mark Cuban believes the US SEC's approach to target crypto tokens like filecoin won't work.
Published by
Billionaire 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.

Advertisement

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.

Advertisement

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.

Advertisement

Share
Jai Pratap

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you'll find him reading Russian literature or watching some Swedish movie.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Breaking: 21Shares Amends Sui ETF with Staking, Nasdaq Listing, Other Key Details

21Shares updates its Sui ETF application with the U.S. Securities and Exchange Commission (SEC). The…

October 24, 2025
  • News

Binance’s Changpeng Zhao Takes on Senator Elizabeth Warren On False “Fraud” Allegations

Following US President Donald Trump's announcement of a prison pardon to Binance founder Changpeng Zhao…

October 24, 2025
  • News

Trump Tariffs: Crypto Market Volatility Looms As US President Terminates Trade Talks With Canada

The crypto market is bracing for volatility after the U.S. President announced the termination of…

October 24, 2025
  • News

Coinbase CEO Says Market Structure Bill Will Pass by Year-End Despite Government Shutdown

Coinbase CEO Brian Armstrong has said he expects the long-awaited U.S. crypto market structure bill…

October 24, 2025
  • News

Breaking: Trump To Meet China’s President On October 30, Bitcoin Bounces

Bitcoin surged above $111,000 after confirmation that President Donald Trump and Chinese President Xi Jinping…

October 23, 2025
  • News

Breaking: Trump Pardons Binance’s Changpeng “CZ” Zhao, BNB Spikes

U.S. President Donald Trump has reportedly pardoned Binance founder Changpeng "CZ" Zhao for his conviction…

October 23, 2025