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According to reports, billionaire Mark Cuban recently noted that the ongoing attack on crypto tokens by SEC and the U.S. government would ultimately not work.
Cuban: SEC attacks on tokens will not work
Mark Cuban responded to a crypto enthusiast, Rodrigo, who tweeted that the SEC intends to regulate the crypto space using ”third parties” pronouncements without involving the project creators.
The user, Rodrigo, highlighted the example where the SEC claimed that FIL is security—the SEC sent a letter to Grayscale without offering Filecoin the chance to respond.
Rodrigo highlighted other past cases of Wahi, Bittrex, and others where the SEC alleged that some tokens are securities, even without involving the token providers.
This won’t work with filecoin or chains that release their own token, but what may come next is for tokens is to release them all, leaving no treasury, take the receipts and use them to provide liquidity using defi for trains the token , and then dissolve the original entity…
— Mark Cuban (@mcuban) May 23, 2023
While responding to the statement, Mark Cuban noted that the attacks wouldn’t work on the Filecoin chain and chains with their tokens.
“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.”
Mark Cuban, investor.
Mark Cuban insinuates that the SEC and government can do nothing once the tokens are in circulation and the creator decides to close down the entity.
Cuban believes that once that is done, the token achieves full decentralization. As such, there would be no way of actually restricting the token.
After sharing his sentiment, the billionaire asked for thoughts on the subject from the community.
The consensus was that the securities laws in the U.S. had been designed unfairly. One user suggested that projects need just to exclude the U.S.
SEC’s complaint against Filecoin
The Filecoin token issues with the SEC started when Grayscale made a registration statement with SEC.
However, on May 16, the SEC sent a letter to Grayscale indicating that FIL, Grayscale trust’s asset is a security. Hence, SEC asked Grayscale to withdraw the registration statement.
The latest complaint was in response to a release on May 17, where Grayscale announced the ongoing issues with Filecoin in a press statement.