Federal Reserve Publishes Framework for Digital Currencies

United States SEC Clarifies Stablecoins Are Not Securities

The United States Securities and Exchange Commission (SEC) has issued a statement clarifying that stablecoins, a type of cryptocurrency pegged to the value of a fiat currency, are not considered securities.

The clarification comes after a series of recent inquiries and examinations by the SEC into the use of stablecoins in various financial applications. The agency's statement aims to provide regulatory certainty for market participants and investors.

According to the SEC, stablecoins are not securities because they do not meet the definition of an investment contract under federal securities laws. The agency noted that stablecoins are designed to maintain a stable value, typically by being pegged to the value of a fiat currency, and are not intended to generate profits for investors.

The SEC's clarification is seen as a positive development for the cryptocurrency and blockchain industry, which has been grappling with regulatory uncertainty. The agency's statement provides a clear framework for the use of stablecoins in various applications, including decentralized finance (DeFi) and non-fungible token (NFT) markets.

"We are pleased to provide regulatory clarity on the status of stablecoins," said SEC Chairman Gary Gensler. "Our statement aims to provide a clear framework for market participants and investors, and we will continue to monitor the development of the stablecoin market to ensure its integrity and stability."

The SEC's clarification is expected to have a significant impact on the development of the stablecoin market, which has seen significant growth in recent years. The agency's statement is also seen as a positive development for the broader cryptocurrency and blockchain industry, which has been grappling with regulatory uncertainty.

In related news, the SEC has also issued a statement on the use of blockchain technology in the securities industry. The agency's statement highlights the potential benefits of blockchain technology, including increased transparency and efficiency, but also notes the need for careful consideration of the potential risks and challenges associated with its use.