Gemini

<figure> 
 <figcaption>
 Cover image via <a href="https://u.today/" rel="noopener noreferrer nofollow">U.Today</a> 
 </figcaption> 
</figure> 
Tech mogul and billionaire investor <a href="https://twitter.com/mcuban/status/1693979275370623435?s=20" rel="noopener noreferrer nofollow">Mark Cuban</a> has added his voice to the ongoing debate surrounding the regulation of cryptocurrencies, taking a jab at the U.S. Securities and Exchange Commission (SEC) in a recent tweet. The dispute revolves around whether certain crypto assets should be classified as securities, which would subject them to stringent regulations. 
Cuban's tweet was sparked by Gemini's response to the SEC's complaint against the crypto exchange. <a href="https://u.today/ripple-case-echoes-in-geminis-court-reply" rel="noopener noreferrer nofollow">Gemini</a> referenced Judge Torres' recent decision in the <a href="https://u.today/xrp-attorney-says-sec-lawsuit-caused-inestimable-damage-heres-how" rel="noopener noreferrer nofollow">SEC v. Ripple</a> case, asserting that the Howey test — a well-established criterion for identifying securities — should apply to the entirety of circumstances encompassing the "offers and sales of the underlying asset." 
<h2 id="rigid-regulation">Rigid regulation</h2> 
In his tweet, the billionaire entrepreneur emphasized that the Reves test emerged due to the recognition that the Howey test does not universally apply to all sales. <a href="https://u.today/cuban-challenges-gensler-on-crypto-rules" rel="noopener noreferrer nofollow">Cuban</a> drew parallels to the present situation, suggesting that just as a new approach was needed for securities beyond the Howey test's scope, a fresh perspective was now necessary for the evolving landscape of cryptocurrencies. 
<blockquote class="twitter-tweet"> 
 Someone needs to remind the SEC that Reves exists because Howey doesn't apply to all sales. There was a need for a new test. Just as there is now for crypto— Mark Cuban (@mcuban) <a href="https://twitter.com/mcuban/status/1693979275370623435?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 22, 2023</a> 
</blockquote> 
The Reves test, rooted in the Reves v. Ernst &amp; Young case, evaluates four key factors: the intentions of the buyer and seller, the method of distribution, the public's reasonable expectations and any risk-mitigating considerations. Cuban's tweet echoes the sentiment among many crypto proponents that the traditional securities framework may not seamlessly fit the unique attributes of digital assets. 
Cuban's intervention underscores the broader tension between innovators and regulators, as the digital economy continues to outpace the development of appropriate legal frameworks.

Billionaire Mark Cuban Roasts SEC with Fiery Reality Check

Table of Contents

U_Today

Other articles published on Aug 22, 2023

FTX founder Bankman-Fried ‘on bread and water’ in jain, lawyers claim Sixth Amendment violation

Ethereum co-founder praises X’s Community Notes for echoing crypto principles

Big Wallet Investors are Eyeing XRP's Potential Comeback Amid SEC Lawsuit

Shibarium Mampu Dorong Burn 5 Triliun SHIB per Bulan?

New Cryptocurrency Mining Center Launched in Oman!

Unknown Crypto Wallet 3rd-Largest Bitcoin Holder with Over $3 Billion in Holdings

Join our free newsletter for daily crypto updates!