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The US SEC issued the first regulation on stable currency: some stable currency assets are not securities

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The stability currency referred to in the regulation is the stability currency supported by legal tender one on one, excluding algorithmic stability currency.

Rhythblockbeats news, September 22, the SEC issued the first regulation on stability currency. The OFFICE of the Monetary Inspector General (OCC) has issued new guidelines formally clarifying that federal Banks can provide services to issuers of U.S. stabilization currency.

The Office of the Currency Inspector General (OCC) and the SECURITIES and Exchange Commission (SEC) on Monday issued the Stabilisation Currency Guidelines, providing the first detailed regulatory guidance on how to handle fiat currency-backed cryptocurrencies in accordance with the law. This is the first time the federal government has issued rules on the stability currency.

Stabilisation coin issuers have been using Bank of America as a subsidiary for token issuance for years. The Office of the Currency Inspector General said in a press release that the OCC expects federally regulated Banks to feel comfortable providing services to issuers of stable currency. The letter makes it clear that the stabilisers they refer to are those backed by fiat money one on one, not algorithmic stabilisers.

"National Banks and the Federal Reserve Association are currently engaged in billions of dollars a day in activities related to asset stabilization. This opinion provides greater regulatory certainty for Banks within the Federal banking system to serve customers in a safe and reliable manner," Acting Comptroller of the Currency Brian Brooks said in a statement.

The OCC spells out what Banks should do with their foreign-exchange reserves, particularly those backed by currencies such as the dollar. The OCC has taken some steps to integrate the cryptographic market with the existing financial system. The current acting comptroller of the Currency, Brian Brooks, is a former general counsel at Coinbase. In recent months, the OCC has told Banks that it can provide services to cryptographic start-ups and has proposed a national payment charter for trading platforms and other fintech companies.

The OCC says Banks should still conduct due diligence. The OCC said: "The due diligence process should help in understanding the risks of cryptocurrency, including examining compliance with applicable laws and regulations, including those relating to the Bank Secrecy Act (BSA) and anti-money laundering." This kind of due diligence also includes compliance with the Patriot Act.

In addition, the Securities and Exchange Commission said certain stabilized currency assets may not be securities under federal law, but it recommended issuers work with the SEC and legal counsel to make secondary confirmations. According to the statement, the SEC is willing to issue a "no action" letter assuring recipients that the regulator will not take enforcement action against the company.

Whether a particular digital asset, including a so-called stablecoin, is a security under federal securities law is essentially a decision of fact and circumstance. This decision requires a careful analysis of the nature of the tool, including the rights it claims to convey and how it was sold, "the SEC said.