The United States Securities and Stock Exchange Committee explained its position on stable cryptocurrencies supported by dollars, saying that the “covered” stablecoins “is not securities. This step is another step towards a clear organizational scene in the United States.
Camplecoins, not securities – what about the algorithm stablecoins?
On Friday, April 4, SEC has made an official site on the dollar -backed Stablecooins. Agency Declared in an official statement Those that covered Stablecoins, such as Usdt of Tether and Circle’s USDC, are not the securities that fall under their regulatory jurisdiction.
According to the United States Organizer, the covered stablecoins indicate the distinctive symbols of the designed encryption and marketing it as a means of payment, money transfer or value storage. This Stablecoins maintains value for the US dollar and is supported by the US dollar and/or other assets that are low and easily liquid to allow Stablecoin’s source covered in honoring recovery operations.
The committee said on Friday:
From the department’s point of view, the offer and sale of the covered stablecoins, in the way, and under the circumstances shown in this statement, do not involve the offer and sale of securities in the meaning intended in Section 2 (A) (1) of the Securities Law of 1933 (Securities Law) or Section 3 (A) (10) of the Securities Disciplinary Law 1934 (ACT Exchang).
As such, the companies participating in the “mining” process (or creation) and the recovery of this covered stablecoins are not required to register their transactions with the committee. It should be noted that the regulator seemed to exclude the algorithm stablecoins, which use programs to increase or reduce Stablecoins in response to the request, from this clarification statement.
This lack of organizational certainty in the algorithm Stablecoins is a bit surprising thing, given the catastrophic collapse of the Terra’s Stablecoin (UST) in 2022. The fall of the Terra Luna ecological system witnessed a loss of approximately $ 45 billion from the market in one week.
The position of the Supreme Council for the American Education is in line with the proposed Senate legislation
SEC’s clarification statement on covered Stablecoins appears to be in line with the regulations established in the Stablecoin Genus and ACT Bill in the US Senate.
On February 4, American Senator Bill Hajari submitted a draft law to create a regulatory framework for Stablecoins that would allow symbols, such as USDT and USDC, to decrease under federal reserve rules.
This legislative draft law aims to protect the situation of the US dollar as the global reserve currency, as the largest sources of Stablecoin are returning their symbols with the deposits of the US dollar kept in organized financial institutions and short -term US Treasury invoices.
From writing these lines, Tether’s USDT ranks the largest rank of Stablecoin and the third largest encrypted currency, with market arrangements for more than $ 144 billion.
The market capitalization of Tether's USDT on the daily timeframe | Source: USDT chart on TradingView
Distinctive image from Canva, tradingView graph
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