Are stablecoins securities? Well, its not so simple, say lawyers
One lawyer said that while stablecoins are meant to be stable, buyers may possibly profit from a range of arbitrage, hedging, and staking opportunities. Recently reported planned enforcement action against Paxos by the United States Securities and Exchange Commission (SEC) over Binance USD (BUSD) has many in the community questioning how the regulator could see a stablecoin as a security. Blockchain lawyer s told Cointelegraph said that while the answer isn't black and white, there exists an argument for it if the stable coin was issued out in the expectation of profits or are derivative of securities . A report from the Wall Street Journal on Feb. 12 revealed that the SEC is planning to sue Paxos Trust Company in relation to its issuance of Binance USD, a stablecoin it created in partnership with Binance in 2019. Within the notice, the SEC claims that BUSD is an unregistered security. don't hate me but custodial stablecoins are probably all securities I have said this consist...