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U.S. regulatory authorities may list fiat-collateralized stablecoins as securities. Is there a chance for algorithmic stablecoins to usher in spring?
Since members of the US Congress drafted the “Stablecoin” related bill earlier this month, the US Financial Markets Working Group (PWG) recently issued a statement on the regulatory issues for stablecoins. According to the statement, stablecoins may be defined as securities.
(Note: The requirements of the “Stablecoin” bill drafted by US lawmakers: issuers need to obtain a bank license before issuing stablecoins, and it is illegal to carry out any unapproved stablecoin-related services)
The statement pointed out that “based on design and other factors, stablecoins may constitute securities, commodities, and derivatives regulated by the U.S. Federal Securities, Commodities, or Derivatives Law.” However, “whether stablecoins are securities, commodities or derivatives will depend on Relevant facts and circumstances”.
Fxstreet pointed out that if the regulatory issue is approved into law, stable currencies such as USDT will be included in the scope of the federal securities law. In this case, the US Securities and Exchange Commission (SEC) may sue Tether for issuing unregistered securities.
Recently, the SEC announced that it would file a lawsuit against the company and its two executives on the grounds that Ripple issued unregistered securities. Affected by the news, the price of XRP plummeted by over 60%. Therefore, if stablecoins are classified as securities and the SEC initiates a lawsuit against Tether, the cryptocurrency market may experience a “huge shock.”
It is worth noting that the PWG did not publish regulatory requirements for algorithmic stablecoins this time. However, judging from the early US official regulations, algorithmic stablecoins may not be under the jurisdiction of regulatory agencies.
In September of this year, the U.S. Office of the Comptroller of the Currency (OCC) and the U.S. Securities and Exchange Commission (SEC) issued guidelines for stablecoins for the first time, providing the first detailed guidelines on how to handle cryptocurrencies backed by legal tender in accordance with the law. “OCC clearly pointed out in the guide that the stablecoins it refers to are stablecoins supported by fiat currencies one-to-one, excluding algorithmic stablecoins.”
Regarding the regulatory requirements for listing stablecoins as securities, US lawmakers drafted relevant bills as early as October last year. At that time, Rep. Sylvia Garcia submitted a bill to the Financial Services Commission, which emphasized, “Since the issuer of the custodial stablecoin insists that the custodial stablecoin is not a security, Congress should modify the legal meaning of the term securities to include custodial stablecoins. “.