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According to the internet (and the first result from google) "Securities are fungible and tradable financial instruments used to raise capital in public and pr
by mikewarot 4y ago
According to the internet (and the first result from google)
"Securities are fungible and tradable financial instruments used to raise capital in public and private markets"
It's a financial instrument, tradeable, and used to raise capital in public markets.
How is a stable coin not any of these?
- whatisweb3 4y agoSEC uses Howey test to classify an asset as security, which includes “expectation of profits.”
- mikewarot 4y agoHow do people who use Stablecoins to route around regulation not expect profit?
- whatisweb3 4y agoStablecoins are used for a variety of reasons. Using them to skirt taxes or laws is a poor choice. USDC for example will freeze funds at the request of authorities, Circle's goal is to design a regulatory compliant stablecoin. A user might decide to use a stablecoin as a fast and low-fee transfer mechanism for remittances and donations, or to manage a multisignatory account, or to hedge against the falling price of a crypto asset, or for some application of escrow in a smart contract.