Entrepreneur and billionaire investor Mark Cuban recently shared his perspective on the Securities and Exchange Commission’s (SEC) classification of Filecoin (FIL) as a security and proposed a solution for crypto companies to achieve decentralization and avoid regulatory conflicts.
.@SECGov wants to regulate crypto through pronouncements made in proceedings w/ 3rd parties that are practically unchallengeable by those most affected— Rodrigo (@RSSH273) May 17, 2023
This is fundamentally unfair. Due process is not upheld when regulators look to score cheap points while the other team is off…
Cuban suggested that crypto-issuing platforms release their entire token supply without retaining any portion as a treasury, achieving true decentralization. This approach would make it challenging for regulators like the SEC to accuse the token of being a security. John Deaton, a pro-XRP lawyer, responded positively to Cuban’s proposal, acknowledging its merits but emphasizing the importance of challenging the SEC’s narrative. The ongoing struggle for regulatory clarity in the cryptocurrency industry is highlighted, with companies and advocates working to define the legal status of tokens.
This is smart and probably in someone’s playbook at the moment. But we must continue to fight the SEC’s narrative that the the underlying asset itself (the token) is the security. In an investment contract, the underlying asset is NEVER the security. https://t.co/hhayixgnJR— John E Deaton (@JohnEDeaton1) May 24, 2023
While Cuban’s proposal offers an alternative path, it is crucial to engage in constructive dialogue between industry participants and regulators to shape a fair and compliant cryptocurrency ecosystem.
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