Regulatory action on privately funded companies threatens to disrupt growth and the path to the public market, billionaire investor Mark Cuban contended Friday.
Private valuations in Silicon Valley, particularly the so-called "unicorns" worth $1 billion or more, have drawn the attention of the Securities and Exchange Commission. The agency's Chair Mary Jo White addressed the concerns in a speech at Stanford University on Thursday, calling for companies to be honest with investors about their worth.
Cuban argued that, if the SEC chooses to get involved with Silicon Valley, it should set clear rules to avoid stifling growth or creativity.
"If you don't know what the rules are, it just gives the SEC room to take whatever actions they want," the "Shark Tank" investor and Dallas Mavericks owners said on CNBC's "Closing Bell."