The American billionaire and reality show star Shark Tank proposed an option by which cryptocurrency issuers could avoid persecution by the US Securities and Exchange Commission (SEC).
Mark Cuban believes that crypto-issuers could immediately issue their assets and use them to provide liquidity through decentralized finance (DeFi), but then it is worth disbanding the original organizations that issued crypto-assets. Cuban is confident that this will ensure true decentralization, and regulators will not be able to do anything with token issuers or their crypto assets in circulation. In this case, no financial benefit will be seen for the creators of cryptocurrencies, and the SEC will be powerless, even if it sues the issuer.
The businessman put forward the proposal in a comment on a tweet where the user criticized the US SEC for taking enforcement action against crypto companies. In particular, the criticism concerned the recent statement by the SEC that the Filecoin cryptocurrency can be considered a security. The agency called on Grayscale to withdraw its application to launch the Filecoin Trust fund.
However, many users questioned Cuban’s idea. The dissolution of a legal entity may indeed make it more difficult for regulators to take enforcement action, but the individuals behind the cryptocurrency project should still be held directly accountable for it.
Mark Cuban is considered an active supporter of cryptocurrencies. Last year, he stated that even the fiasco of the FTX crypto exchange could not prevent the industry from flourishing. The billionaire is also confident that investing in bitcoin is much more profitable than investing in precious metals.