SEC Chairman Gary Gensler hinted that some stablesoins are securities subject to SEC rules
Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), suggested that security-backed equity tokens and stabotos could be treated as securities. Gary Gensler of
said in an interview with the American Bar Association that some trading platforms offer currencies corresponding to priced securities as well as derivatives, and that cryptocurrencies whose prices depend on the securities may be subject to securities laws. "Whether it's equity tokens, stable value tokens backed by securities, or any other virtual product that provides comprehensive exposure to the underlying securities, these platforms, whether decentralized or centralized in the financial sector, are subject to securities laws and must operate within our securities regime," he said.
SEC refers to the trading of stock tokens, which are cryptocurrencies that act as composite representatives of traditional stocks (such as Apple or Tesla). These tokens are typically created on the Ethereum blockchain." Gary Gensler of
"sternly warned that the SEC could take legal action and we have already proposed some penalties involving securities based swaps of retail securities." In 2019, the SEC imposed a fine on cryptocurrency wallet Abra. Abra offered toxified versions of Apple, Google and Netflix shares to U.S. customers in mid-2019. It discontinued the business in July 2020 after a series of SEC and CFTC fines.
most notably recently, binance sold stock tokens that were hunted down and eventually had to back down and close the business. It's not just Gensler who considers security-backed staboins to be securities. U.S. Rep. Warren Davidson has told the press that it's hard not to see staboins as securities, and therefore, security-backed staboins should be regulated by the SEC.