Stable cryptocurrency: a security or not?

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Once again, the Chairman of the U.S. Securities and Exchange Commission, Gary Gensler, has stirred up the cryptocurrency community. He refused to rule out the possibility of regulating stable cryptocurrencies as securities. This happened during a meeting in the Senate Banking Committee. This will affect the regulation of cryptocurrency among emigrants and lead to problems.

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The Chairman evaded the question posed by Pat Toomey. Pennsylvania Senator Pat Toomey asked Gary how much he believes in stablecoins or cryptocurrencies as securities.

Stablecoins are out of favor again

Many are confident in the potential of stable cryptocurrencies. They believe that stable cryptocurrencies will serve as a golden mean that will connect the financial worlds of the past and the future.

Not for the first year, stable cryptocurrencies have been a bridge that facilitates trading in the world of cryptocurrencies. Regulators consider stablecoins a threat of risks to the economy.

Janet Yellen, the Treasury Secretary, convened the Presidential Working Group on Financial Markets in July. In order to draw attention to the threat posed by stablecoins. Having said that it is necessary to act immediately to ensure the regulatory framework.

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Intrigue or concern?

Many believe that Gesler, on the contrary, saw the whole prospect of stablecoins and hurried to gain power over new tools.

Dean Steinbeck, general counsel of the Horizen blockchain platform, believes that Gensler obviously wants the SEC (US Securities and Exchange Commission — The agency of the US government is the main body performing the functions of supervision and regulation of the American securities market.) had unlimited powers in cryptography. Also, he added that he agrees with Tumi's analysis Howie 's test.

Is stablecoin officially recognized?

Any security in the USA is a security only after it has passed the Howie test. If a security passes the test, it falls under the two laws, and must be carried out in compliance with certain requirements for disclosure and registration.

Gesler believes that stablecoins fall under the law. Since there are examples of financial instruments that have not passed the test, but are controlled by law no less than those that have passed it.

Associate professor of the Willamette University School of Law and president of the Modern Money Network, Rohan Gray thinks that assets can be like a bill of exchange, a certificate of deposit, and this in turn is securities.

Gary Gorton, a professor of finance at the Yale School of Management, conducted a study that showed that the statement about whether a stablecoin is a security is most likely controversial, and that the regulators of the Treasury Department and the Federal Reserve are likely to intervene so that it can be controlled..

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