Some stablecoins might be viewed as security tokens in the eyes of the U.S. Securities and Exchange Commission, writes Decrypt Media. The SEC’s Senior Advisor for Digital Assets Valerie Szczepanik spoke of this issue at the SXSW conference. While she believes algorithmic and digital-asset backed stablecoins could be perceived as securities, the SEC still needs to look further into the issue.
As she explained, people buying into the stablecoin ecosystem, are doing so “with the expectation that somebody else is going to be holding a profit, or guaranteeing a profit, or holding the price at a certain level. Again, that could raise issues under securities laws.”