Cuban’s suggestion follows SEC Commissioner Mark Uyeda’s footnote describing the agency’s current approach to crypto disclosure filings as “problematic.”
Form S-1
Form S-1 is the registration statement that the SEC requires domestic issuers to file to offer new securities publicly. The form includes essential company information such as business operations, risk factors, and other important details about the product offerings. Any company seeking to trade its security shares on a national exchange like the New York Stock Exchange must file the form.
Uyeda pointed out that most crypto issuers have unique characteristics that might not fit the information currently required in Form S-1.
“Many of these issuers and crypto digital assets have characteristics for which Form S-1 may technically require information that is not relevant or applicable, but does not require certain information that may be material.”
Uyeda further noted that the Commission’s current approach “neither facilitates capital formation nor protects investors.”
So, Uyeda proposed that the SEC allow variances for the Form S-1 filings of crypto digital assets, similar to those for funds, insurance products, and other securities. Uyeda believes this approach could lead to offerings with more relevant material information for crypto and its issuers.
Uyeda added:
“[Such an approach may have] the accompanying investor protection and remedies under the Securities Act.”
Crypto community agrees
In a July 2 social media post, Cuban supported Uyeda’s view, stating:
“The issue isn’t that crypto companies don’t want to register. The issue is that it’s like trying to put a square peg in a round hole. It doesn’t fit. Which is why there is not a single token-based company that is registered and operating.”
Similarly, the US Blockchain Association praised Uyeda’s statement as the thoughtful engagement needed by the industry. They said:
“This is exactly what the industry needs — thoughtful engagement by the SEC to ensure innovation thrives while consumers are protected.”