American billionaire and Shark Tank star Mark Cuban believes United States SEC’s approach to target cryptocurrency crypto tokens and labeling them as securities won’t work.
The United States Securities and Exchange Commission is on a roll to label cryptocurrency crypto tokens as securities as it persists to participate in a historic legal battle with Ripple and XRP Ripple (XRP). Earlier, the SEC sent a letter to Grayscale claiming Filecoin is a security.
The American billionaire tweeted that SEC approach to label Filecoin crypto token as security won’t work. Not just Filecoin but any chain that releases its crypto token can not be targeted like this.
Mark Cuban predicts what may come next for these tokens
The billionaire investor thinks that what may come next for crypto tokens is to release them all, leaving no treasury. “Take the receipts and use them to provide liquidity using Decentralized Finance to train the crypto token , and then dissolve the original entity that releases the token,” he added. Mark Cuban thinks regulatory authorities can not do anything about the crypto token issuers or the crypto token once they are in circulation and their issuers close down the entity.
Twitter user @RSSH273 claimed that dissolving the legal entity could make it marginally harder for regulatory authorities to attract 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 do not think there is anything the SEC could do or win if they did try to sue,” Cuban added.
United States SEC persists to go after cryptocurrency tokens
Earlier, the United States SEC sent a letter to Grayscale Assets claiming that Filecoin crypto token qualifies as a security. The security commission is leaving no stones unturned to target the cryptocurrency industry.
SEC has already targeted cryptocurrency exchanges Kraken, Bittrex, and Coinbase Crypto exchange for allegedly selling unregistered securities.