In a heated dialogue with Coinbase Chief Authorized Officer Paul Grewal, famed billionaire entrepreneur Mark Cuban launched a fiery criticism of america Securities and Trade Fee (SEC).

Cuban pointed to the current victory within the Ripple case as proof that not everybody who buys cryptocurrencies ought to routinely qualify as traders.

Cuban strongly believes {that a} safety’s major perform is as a safety, which reveals a stark distinction between crypto property bought on centralized exchanges (CEX) and people obtained from decentralized finance platforms (DeFi).

He identified that delving into the world of blockchain transactions can reveal sensible functions for tokens that transcend easy funding ideas.

Cuban took the controversy to social media platform Twitter, noting that the SEC tends to categorise each purchaser as an investor in its official filings.

He disputed this and praised Ripple for successfully clarifying the excellence. In his view, securities exist for one function solely: to be securities.

For consumers of DeFi or CEX platforms, it’s not all the time doable to discern the motivations behind their acquisitions. Nevertheless, by fastidiously learning the blockchain, one can glean invaluable insights into the usefulness of tokens.

Responding to Cuban’s assertion, Grewal cited famed psychologist Abraham Maslow’s idea: “Should you solely have a hammer, every part appears like a nail.”

He in contrast this to the SEC’s strategy to regulation, suggesting the regulator was too targeted on one perspective.

Professional-Ripple authorized skilled John Deaton has expressed sturdy help for Cuba’s view, with which he additionally agrees, agreeing that not all consumers needs to be categorized as conventional traders.