The statement was filed by the company’s chief lawyer, Heath Tarbert, in the court hearing the US Securities and Exchange Commission (SEC) case against the crypto exchange Binance. The reason for the claim was the exchange’s accusation from the SEC that the BUSD stablecoin was positioned as a profitable instrument of the reward program and represents an investment contract.
Circle argues that dollar-pegged assets, such as the exchange’s BUSD stablecoin and its own USDC, cannot be considered securities because their users do not expect any profit from the acquisition.
“Payment stablecoins themselves do not have any characteristics of an investment contract. Assets pegged to fiat currencies are not subject to SEC jurisdiction. Decades of case law support our view that the sale of an asset, divorced from any post-sale promises or obligations of the seller, is insufficient to conclude its investment character,” Circle said in a statement.
Earlier, SEC Chairman Gary Gensler spoke at a hearing of the US House of Representatives Banking Committee and admitted that Bitcoin is not a security and should not pass the Howey test.
Source: Bits
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