The ongoing dispute between Binance and the US Securities and Exchange Commission (SEC) has recently captured the attention of Circle, the cryptocurrency trading platform, which submitted an amicus curiae brief, affirming that its own USDC and Binance’s BUSD stablecoin, both pegged to the US dollar, should not be classified as securities. The brief pointed out that those utilizing stablecoins do not expect any kind of profit from the standalone purchase, so they differ from traditional securities.
To support its case, Circle appealed to accepted legal standards, noting that a seller’s lack of responsibility beyond a post-sale asset would not meet the standards instituted by the SEC for an investment contract. Furthermore, Circle stated that stablecoins used within payment systems do not contain the essentials of an investment contract, shrugging off any perceived regulatory purview that may currently exist. This is paramount news for crypto marketplaces like Binance and Coinbase as they attempt to dodge present taut fiscal regulations accessible in the US.