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.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.