In its comment on the SEC vs. Binance case, Circle claims that stablecoins are not securities.
Circle has emphasized that assets linked to the U.S. dollar do not fall under the category of securities. This is primarily because those acquiring these assets do not anticipate any profits from their acquisition. Circle, the entity behind the USD Coin stablecoin, has weighed in on the legal dispute between the United States Securities and Exchange Commission (SEC) and the cryptocurrency exchange, Binance. In an official court filing, Circle has asserted that assets pegged to the U.S. dollar, such as Binance USD (BUSD) or USDC, do not qualify as securities because individuals purchasing these assets are not anticipating any financial gains. According to Circle’s perspective, payment stablecoins do not inherently possess the characteristics of an investment contract. On June 5th, the SEC filed a lawsuit against Binance, citing several alleged legal infractions. The regulatory body has brought forth a total of 13 charges against the cryptocurrency exchange. These allegations incl...