Billionaire investor Mark Cuban has called on the US Securities and Exchange Commission (SEC) to amend Form S-1 so that companies working with tokens can easily register with the government.
Cuban’s proposal comes after SEC Commissioner Mark Uyeda’s footnote describing the agency’s current approach to cryptocurrency disclosure filings as “problematic.”
Billionaire investor Mark Cuban
Form S-1
Form S-1 is the registration statement that the SEC requires domestic issuers to file to publicly offer new securities. The form includes essential company information such as business operations, risk factors, and other important details about the offering. Any company that wants to trade its stock on a national exchange such as the New York Stock Exchange must file this form.
Uyeda points out that most cryptocurrency issuers have unique characteristics that may not fit the information currently required in a Form S-1.
“Many crypto-issuers and digital assets have characteristics where the Form S-1 may technically require irrelevant or impractical information, but does not require certain information that may be important.”
Uyeda further noted that the Commission’s current approach “neither facilitates capital formation nor protects investors.”
As such, Uyeda proposes that the SEC allow changes to the Form S-1 filings for digital assets, similar to those for funds, insurance products, and other securities. Uyeda believes this approach could lead to more consistent disclosure of important information for crypto and issuers.
Uyeda added:
“Such an approach could have investor protections and remedies that come with it under the Securities Act.”
Cryptocurrency Community Agrees
In a social media post on July 2, Cuban supported Uyeda’s views, show: “The problem is not that crypto companies don’t want to register. The problem is that it’s like trying to fit a square peg into a round hole. It doesn’t fit. That’s why there isn’t a single token-based company that’s registered and operating.”
Similarly, the Blockchain Association of America praised Uyeda’s statement as the thoughtful engagement the industry needed. They say:
“This is exactly what the industry needs – thoughtful engagement from the SEC to ensure innovation thrives while users are protected.”
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According to Cryptoslate
