EPISODE · Aug 14, 2024 · 25 MIN
Stablecoins: Are They Securities? by James Ramsden KC, Astraea Group
from Digital Bytes by Team Blockchain Radio; Powered By Cyber.FM · host James Tylee / Jonny Fry
Stablecoins, especially those that bear interest, could be classified as securities under US law using the Howey Test. Stablecoins generally are not considered securities because their value is pegged, however, interest-bearing stablecoins could complicate this assessment. However, Circle (issuer of USDC) asserts that stablecoins function as currency substitutes, lack profit potential from issuers' efforts and should not be seen as securities. The conclusion is that interest-bearing stablecoins should not be classified as securities. Full Article Here
What this episode covers
Stablecoins, especially those that bear interest, could be classified as securities under US law using the Howey Test. Stablecoins generally are not considered securities because their value is pegged, however, interest-bearing stablecoins could complicate this assessment. However, Circle (issuer of USDC) asserts that stablecoins function as currency substitutes, lack profit potential from issuers' efforts and should not be seen as securities. The conclusion is that interest-bearing stablecoins should not be classified as securities. Full Article Here
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Stablecoins: Are They Securities? by James Ramsden KC, Astraea Group
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