SEC gives OK to social media platform to issue stablecoin without registering as a security

by David Solomonoff

SEC gives OK to social media platform to issue stablecoin without registering as a security

Very unusual because cryptocurrencies that can be converted to real world fiat currencies are usually considered securities and regulated as such, could open door to less heavily regulated crypto:

Would “not recommend enforcement action” against avatar social platform IMVU who are issuing a digital currency capable of being converted to fiat.

“This no-action letter is meaningful because unlike the other two, this is the first time an ERC-20 token is being blessed by the SEC — it’s saying ‘hey, take it off platform,’” John Burris, IMVU Chief Strategy Officer said to Cointelegraph. “It’ll be allowed to go into the wild, so to speak.”

Burris theorized that the SEC’s decision was based on establishing a “real proof case” for the broader crypto and blockchain space:

“Our users are already very comfortable with the use case of using cash to purchase a digital currency and then spending that with each other on the platform. We’re very confident in adoption.”

Source: SEC gives OK to social media platform to issue stablecoin without registering as a security

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