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Billionaire Mark Cuban Calls for Legal Overhaul of Token Regulation Framework

Mon, 06/19/2023 - 09:09
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Alex Dovbnya
In a push for an updated approach to cryptocurrency regulation, billionaire entrepreneur Mark Cuban has taken to Twitter to express his concerns over the current legal framework
Billionaire Mark Cuban Calls for Legal Overhaul of Token Regulation Framework
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Billionaire entrepreneur Mark Cuban has urged for a revamped legal framework for token regulation in a series of tweets.

Drawing a comparison between the complexity of digital content law and the potential for varied token types, Cuban argued that a new system should be implemented by the Securities and Exchange Commission (SEC). "Thinking more of the need for a different form of registration for multi function tokens by the SEC, there is a legal precedent. Look at content," he said. 

Cuban's tweets have opened a new discussion on the multifaceted potential of tokens in contrast to the predominantly one-dimensional approach currently employed by the SEC.

According to the billionaire, "When an asset is multi-function, it's impossible to determine the intent of the owner, buyer, or seller. Which is why the SEC needs to offer a registration process that is specific to crypto tokens and future multi-function digital assets." This highlights the complexity and nuances of a rapidly evolving cryptocurrency market.

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In the conversation, the billionaire also referenced a recent SEC interaction with Coinbase, the largest cryptocurrency exchange in the U.S., hinting at the legal difficulties even for companies complying with existing rules.

Cuban mentioned the hurdles that start-ups have to jump through if they're looking to raise up to $10 million, including hiring a securities lawyer and going through a detailed SEC process. This, Cuban argues, fails to deal with the trading aspect of the token after the fact, reflecting a disconnect in the current regulatory framework.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at