Billionaire Shark Tank Star Mark Cuban Blasts SEC, Says the Regulator Fails To Protect Investors
Celebrity billionaire Mark Cuban thinks the U.S. Securities and Exchange Commission (SEC) doesn’t do an effective job of protecting investors.
The Shark Tank star refers to the SEC as “the QuickBooks of Financial Regulation.”
“They don’t protect anyone but they are really good at bookkeeping. Has the SEC ever moved in to protect investors BEFORE something bad has happened?
I’ve supported and profited from Sharesleuth.com, finding obviously fraudulent companies and publishing what we have found.
The SEC has NEVER stepped in to stop the fraud, including one company we showed that had no power to their operations but was issuing releases. lol.”
Sharesleuth.com, which Cuban owns, publishes investigations that probe fraud and deception by public companies and their executives.
Cuban also calls for new securities laws for crypto assets.
“All you need to know is that Howey was not enough to cover every situation, so Reves came along.
Now there’s a need for a crypto complement to Howey and Reves.
It’s also nice to know that if the SEC had taken the same path as Japan and required collateral for crypto loans, all the bankrupt crypto services would still be alive. Just as FTX Japan is.”
The Howey test is a legal criterion often cited to determine whether a transaction counts as an investment contract or not. According to the test, an investment contract is “a contract, transaction or scheme whereby a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.”
The Reves test focuses on whether a financial instrument or offering is a security, according to SIMFA, a trade association for broker-dealers, investment banks and asset managers operating in the US and abroad.
Explains the trade association,
“The Reves Test identifies four factors, the balance of which can indicate whether or not a note is a security. They are: 1) the motivations of the buyer and seller, 2) the plan of distribution, 3) the reasonable expectations of the investing public, and 4) any risk-reducing considerations.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
Credit: Source link
Comments are closed.