US SEC and OCC Issue First Regulatory Guidance for Stable Coins

The U.S. Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC) issued a stablecoin guide on Monday for national banks and U.S. federal savings associations to maintain. stable currency reserves. This would be the first detailed national guide on how cryptocurrencies backed by fiat currencies, with the dollar in particular, should be treated under federal securities law.

According to a letter published by the OCC and signed by the head of the OCC, Jonathan V. Gould, there were risks of banking any issuer of stablecoins. However, the letter detailed how banks could better hold stable coin reserves which, according to the head of OCC, were an increasingly popular digital asset.

The letter also said how stablecoin issuers can gain the trust of their potential customers regarding the safety of their products once regulated banks maintain their stablecoin reserves. In addition to this, the letter clarified that the guide was intended for stablecoins kept in hosted wallets that are controlled by a trusted third party.

In a ad of your own, The U.S. Securities and Exchange Commission (SEC) cited the letter from the Head of the OCC and stated that certain stablecoins were not securities under federal law and advised stablecoin issuers to work with the SEC to ensure the same.

Under the new announcement, the SEC was ready to provide a “no action” letter to stablecoin issuers to ensure that companies do not invoke federal law enforcement actions. The SEC said in the announcement:

Whether (…) stable currency is a security under federal securities laws is inherently a determination of facts and circumstances. This determination requires a careful analysis of the nature of the instrument, including the rights it purports to convey and how it is offered and sold.

This is a machine translation of our English version.

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