The SEC’s (Securities and Exchange Commission) decision to prosecute three individuals for cryptocurrency insider trading has received much negative attention.
According to the report, a former Coinbase employee informed his brother and a friend about the assets that would be published on the exchange, and they used it to purchase them in advance for a profit.
The SEC is under fire from many in the sector for pressing charges without establishing clear guidelines. However, for Cuban, the very development of those norms could be problematic.
He openly criticized the US SEC for utilizing murky regulations to control Bitcoin and the cryptocurrency sector, a move he claims could harm the market to a large extent.
The probes by the SEC have resulted in a growing sense of concern amongst major corporations and leaders about the poor treatment and how it could stunt the market’s growth in the future.
Mark Cuban firmly believes that the institution should give more information about the tokens it considers securities that are subject to its control. He criticized the fact that the SEC did not state its position before taking enforcement action.
Cuban doesn’t think that the SEC is likely to shy away from a fight and feels that this is just the beginning of a rough time for the crypto space. Taking a jab at the commission, he added that it seemed as though it was just keeping its lawyers busy
Litigious SEC
This isn’t SEC’s only legal proceeding- the Ripple vs. SEC case has been on for a while now.
All of this might indicate that the SEC lacks objectivity in its dealings with the cryptocurrency sector, especially since Ripple could win with ease, as the laws and framework seem to be in its favor.
For years, numerous crypto businesses have been urging the SEC and the government to create clear regulatory frameworks for the cryptocurrency and blockchain sector. However, it doesn’t appear that the concerned institutions are in a rush to do so.
This also isn’t the first time Mark Cuban has ridiculed the SEC. SEC charged Mark with insider trading back in 2014; however, the billionaire emerged victorious.
Bottom line
The upcoming increase in regulation will significantly impact the crypto business. There’s no denying that it might increase confidence and provide the entire market with more sturdy foundations. But, on the other hand, it will probably require crypto projects to adhere to many more rules, which might be costly and time-taking.
If you are an avid crypto investor or trader, it’s essential to keep a close watch on such developments and voice your opinion on different social media platforms about the same. Stay alert!
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Source: https://coinpedia.org/opinion/sec-regulations-could-be-a-nightmare-for-the-crypto-space-mark-cuban/