WTF? Besides the obvious reasons, does anyone know whether there has been an argument as to whether a stable coin might be classified as a security?
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I vaguely remember something about the SEC claiming some stablecoins are money market accounts and therefore are securities yeah.
I mean at the end of the day, you do deposit money with a custodian even if that custodian gives you a deposit certificate in return.
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Yes, and they can be hedged and staked. The SEC has already taken action against some stable coins. Whether it ultimately is found to be a security or not, is this the kind of crap the lightning network needs right now?
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Is it the lightning network's problem, or is it lightning lab's problem? Because they're the ones who are making it
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I'll reply to myself. There definitely is an argument that stable coins can be looked at as securities by the SEC.
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64 sats \ 1 reply \ @freetx 10 May
One can never predict how these things will go. But I'm leaning 70/30 that they will not treat stables as a security.
For reference, EuroDollars are effectively the 90s/2000s version of stable coins. That is dollar IOUs created outside of the Federal Reserve System.
In the end, the Fed saw that such a system strengthened the dollars network effects -- and more importantly -- the wider userbase allows them to print more with less inflation to US domestic market.
For similar reasons, I think they will come to same conclusion with Stables.
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Maybe. As you know, though, the eurodollar is an oddity. They ARE US dollars, even though they are issued overseas. So they are actually US currency. Stable coins are not. They are pegged to the dollar. Some are backed by dollars, which almost certainly makes them an asset based security.
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They did not announce stablecoins. They announced possibility of the stablecoins, issued by someone else. "We’re not issuing assets, we’re building the rails. Asset issuers will use our technology to issue real-world tokenized assets.”
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I think it’s positive. Some people will use lightning network for stable coins even though they don’t know or use bitcoin. Might ultimately increase adoption.
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Lightning is a payment layer. Why not stable coin payments
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