30 sats \ 6 replies \ @siggy47 10 May \ on: Lightning Labs Announces Stablecoins on Bitcoin Lightning Network bitcoin
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?
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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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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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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