US Securities and Stock Exchange Commission (SEC) softened his attitude towards some fixed valuable Altcoins. The regulatory institution has now announced that some stablecoins that meet certain conditions will not be considered as securities. This decision is this altcoinIt means that the SEC control is out of the SEC control. For Altcoin projects struggling with the uncertainty of arrangement, this is considered a highly critical development.
The definition of “Covered Stablecoin” has come
FOX businessman Eleanor TerrettAccording to the SEC, SEC has created a new category called “Covered Stablecoin .. Fixed valuable Altcoins, which are in this category, are always designed to be equivalent to US dollars at a ratio of 1: 1. The value of such coins has to be supported with easy, safe and liquid assets. In addition, the sum of these assets is in circulation stablecoin it should be equal to or more than it.
Stablecoins that provide these criteria now Selectionwill not fall within the scope of the securities that it considers as an investment tool. Therefore, these Coins will be able to trad in the market without subject to the permission and arrangements of the SEC. At first Circle’s USDC‘s and paypal PyusdMany big and suitable for arrangements, including Stablecoin project This decision has a relaxing effect.
However, this relief does not apply to every stablecoin. The SEC stressed that Coins, who are algorithmic, offer interest or return or receive their value from other assets such as gold or foreign currencies, are out of this scope. These coins may still be considered as securities and may be subject to regulatory sanctions.
Interest income cannot be distributed to users
Although the SEC’s approach offers flexibility, it contains a significant restriction for users. Covered Stablecoin Altcoins in the category will not be able to offer interest or any return. Companies exporting Stablecoin will be able to earn interest income from their reserves, but these revenues will not be shared with users.
This issue is especially Coinbase CEO Brian Armstrong‘s reaction. Armstrong argued that the US Congress should change the legal framework, so that users’ interest income will not be covered by the securities. According to him, the prohibition of providing return to the user may prevent innovation in the field of crypto currency.
The company behind USDC is the chairman of Circle Heath TarbertThey welcomed SEC’s decision. Tarbert stressed that the fact that stablecoins, which are really supported by the dollar, are positive for market security.
Crypto money mobility in the political scene
On the other hand US Congressregulatory work for Stablecoins has gained momentum. Both House of Representatives as well as SenateStablecoin bills are also progressing with the joint support of the two parties. Especially in the election period, crypto currencies and stablecoins have become one of the warm headings of the political agenda.
Donald Trump supporters shape their own agenda with crypto money -friendly policies. The eyes have been turned to the crypto currency summit that SEC will soon organize. At this summit, the future of trade and regulations will be one of the main headings.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
