In a series of tweets, billionaire businessman Mark Cuban called for an updated legal framework for token regulation.
Cuban claimed that a new mechanism ought to be put in place by the Securities and Exchange Commission (SEC), drawing a contrast between the intricacy of digital content regulation and the possibility for various token kinds. “There is a legal precedent that supports the necessity for the SEC to register multi-function tokens in a separate manner. Consider the material, he urged.
Cuban’s tweets have sparked a new conversation on the multiple possibilities of tokens in contrast to the SEC’s present primarily one-dimensional approach.
The billionaire asserts that it is hard to ascertain the intentions of the owner, buyer, or seller when an item has several functions. Because of this, the SEC must provide a registration procedure tailored to crypto tokens and other digital assets with multiple functions. This brings to light the subtleties and complexity of a bitcoin market that is continually changing.
A recent SEC engagement with Coinbase, the biggest cryptocurrency exchange in the United States, was also mentioned by the billionaire during the chat, hinting to the legal challenges faced by businesses that abide by the law.
Cuban addressed the challenges that start-ups must overcome if they want to raise up to $10 million, such as hiring a securities attorney and going through a thorough SEC procedure. This, according to Cuban, ignores the trading component of the token after the event, showing a gap in the existing regulatory framework.
