Mark Cuban Weighs In On Which Tokens Are Securities

By Anthony • June 13, 2023 8:39 am • Comments

The billionaire owner of the Dallas Maverick Mark Cuban has weighed in on the topic of which tokens are securities.

Cuban in a series of posts on Twitter stated it’s “near impossible to know, with or without an army of securities lawyers, what is or is not a security in the crypto universe.”

The billionaire also pointed out that an SEC web page referencing the howey test “conflicts with what the SEC has said publicly. It’s worth a read to get more clarity on what may or may not be a security.”

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Here are his tweets:

 

Check out what Crypto Potato reported:

The SEC’s instruction is so unclear that even an “army of securities lawyers” could not say which crypto assets classify as securities, Cuban argued.

The American businessman, philanthropist, and television personality – Mark Cuban – lambasted the United States Securities and Exchange Commission (SEC) for providing misleading guidance regarding which digital currencies could categorize as securities.

In one of his recent Twitter posts, he claimed that the watchdog’s public statements on the matter differ from the official position on its website. Cuban added that the lengthy guidance does not give information regarding “what is or is not a security in the crypto universe.” He went further, stating one wouldn’t be able to find out the status of the different digital currencies even with “an army of securities lawyers.”

The American thinks the SEC has double standards when speaking of crypto and other aspects of finance. He said last week that the Gary Gensler-spearheaded agency had called the stock loan industry “opaque” and required additional transparency. Unlike the digital asset sector, though, it did not categorize “stock loans” securities and did not file lawsuits against brokers or banks.

John Deaton agreed, take a look:

Per Kitco:

Mark Cuban, the billionaire tech investor and cohost of Shark Tank, has joined the chorus of market participants and industry experts criticizing the U.S. Securities and Exchange Commission (SEC) for refusing to provide crypto firms with a clear process for registration.

“This is an SEC WEB PAGE about the howey test and tokens that often conflicts with what SEC Enforcement has said publicly,” Cuban wrote in a tweet on Sunday. “It’s worth a read to get more clarity on what may or may not be a security.”

Cuban shared a link to a 13-page SEC document entitled Framework for ‘Investment Contract’ Analysis of Digital Assets, which purports to offer guidance on how to determine whether or not a digital asset would qualify as a security in the eyes of the Commission.

“In this guidance, we provide a framework for analyzing whether a digital asset is an investment contract and whether offers and sales of a digital asset are securities transactions,” the document reads, before going through the three key prongs of the Howey test as they relate to crypto.

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