Security tokens refer to the digitalization of securities under the Capital Markets Act using distributed ledger technology, according to the guidance, and will apply only to digital assets that qualify. The guidance clarifies that stablecoins, which are crypto pegged to the value of other currencies such as the U.S. dollar and are used for payments or as a medium of exchange, will likely not fall under the definition of securities. Digital assets that have no issuer and do not have to “fulfill the obligations commensurate with the investor’s rights,” will also likely fall outside of the scope of security tokens.
Related posts
-
Mango Markets Agrees to Destroy MNGO Tokens in SEC Settlement
Mango DAO, Mango Labs and Blockworks Foundation agreed to settle charges with the U.S. Securities and... -
A memecoin frenzy is coming to BNB Chain, and FLOKI tokens are at the centre of it
With the bonding curve model, anyone can deploy a memecoin or a launchpad that supports this... -
SEC’s Gensler Won’t Reveal his View on Trump’s Bitcoin Reserve, Reiterates Bitcoin Isn’t a Security
“Look at the leading lights in this field, in the crypto field just two years ago....