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American billionaire and Shark Tank star Mark Cuban believes US SEC’s strategy to focus on crypto tokens and labeling them as securities gained’t work.

The US Securities and Exchange Commission is on a roll to label crypto tokens as securities because it continues to interact in a historic authorized battle with Ripple and XRP. Earlier, the SEC despatched a letter to Grayscale claiming Filecoin is a safety.

The American billionaire tweeted that SEC strategy to label Filecoin token as safety gained’t work. Not simply Filecoin however any chain that releases its token can’t be focused like this.

Mark Cuban predicts what might come subsequent for these tokens

The billionaire investor believes that what might come subsequent for tokens is to launch all of them, leaving no treasury. “Take the receipts and use them to provide liquidity using defi to train the token , and then dissolve the original entity that releases the token,” he added. Mark Cuban thinks regulators can’t do something concerning the token issuers or the token as soon as they’re in circulation and their issuers shut down the entity.

Twitter person @RSSH273 argued that dissolving the authorized entity may make it marginally more durable for regulators to carry an enforcement motion, however may consequence within the people behind the undertaking being instantly liable, so has some actual draw back. “As there was no financial benefit to the originators , I don’t think there is anything the SEC could do or win if they did try to sue,” Cuban added.

US SEC continues to go after crypto tokens

Earlier, the US SEC sent a letter to Grayscale Investments claiming that Filecoin token qualifies as a safety. The safety fee is leaving no stones unturned to focus on the crypto business.

SEC has already focused crypto exchanges Kraken, Bittrex, and Coinbase for allegedly promoting unregistered securities.

Jai Pratap is a Crypto and Blockchain fanatic with over three years of working expertise with completely different main media homes. His present function at CoinGape consists of creating high-impact internet tales, cowl breaking information, and write editorials. When not working, you may discover him studying Russian literature or watching some Swedish film.

The offered content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty on your private monetary loss.