Circle, the company behind the USD Coin (USDC) stablecoin, has weighed in on the United States Securities and Exchange Commission (SEC) case against crypto exchange Binance, arguing that stablecoins are not securities.
In a court filing, Circle argued that assets pegged to the U.S. dollar, such as Binance USD (BUSD) or USDC, are not securities because those who purchase the assets are not expecting any profit from acquiring them. According to Circle, payment stablecoins do not have the “features of an investment contract” on their own.