Circle intervenes in the SEC case against Binance, stating that the dollar-pegged stablecoin is not a security

ChainCatcher news, according to CoinDesk, stablecoin issuer Circle has intervened in the case where the U.S. Securities and Exchange Commission (SEC) has charged Binance, arguing that financial trading laws should not apply to stablecoins that are pegged to the value of other assets.

Circle believes that assets like BUSD and USDC, which are pegged to the U.S. dollar, cannot be classified as securities, partly because their users do not expect to make any profit from their purchases. Circle stated in the filing that the payment stablecoins themselves do not possess the fundamental characteristics of an investment contract, which means they fall outside the SEC's jurisdiction.