of the SEC cryptocurrency After the BUSD stablecoin, backed by Binance and issued by US-based Paxos, was halted for alleged security, eyes were turned to other stablecoins that could receive similar treatment.
SEC’s Next Target Could Be USDC, According to VanEck Analyst
Gabor Gurbacs, strategy adviser to investment firm VanEck, made an analysis of what the SEC’s next target could be. As it is known, the SEC decides that the assets in question are securities when they mediate the yield (yield) on these stablecoins.
Coinbase offers “rewards” to USDC users. This rewards program doesn’t look like loyalty points. It’s paid in USDC and they use terms like “APY”, “yield”, etc… So where does the yield come from? Does Circle pass along yield via the Center consortium? The SEC will likely ask. pic.twitter.com/UuezeZDuYI
— Gabor Gurbacs (@gaborgurbacs) February 13, 2023
Gurbacs said in his statement that he believes the SEC’s next target is USDC.
Gurbacs expressed his thoughts in his statement as follows:
“Coinbase offers “rewards” to USDC users. This rewards program is not like customer loyalty points. They are paid in USDC and use terms like “APY”, “yield”. So where does the income come from? Does Circle transfer the proceeds through the Center consortium? The SEC will likely ask about these.
Given the recent developments with Paxos and SEC chair Gensler’s latest video on staking and yield, my guess is that the SEC is looking into issues like this. The forward payment of the return can be regulated as a type of fund. Only time will tell.
It is also stated on page 111 of Coinbase’s public file of 10K that Coinbase receives interest income from an income agreement with the USDC issuer.”
It was recently revealed that USDC issuer Circle filed a complaint against BUSD with the SEC.
*Not investment advice.
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