Yield-Bearing Stablecoins Face Securities Classification Risk
CryptoNewsTerminal Staff28 May, 2024
Yield-Bearing Stablecoins Face Securities Classification Risk
Yield-Bearing Stablecoins at Risk of Securities Classification According to Cointelegraph, Nick VanEck, CEO of crypto startup Agora, raised concerns regarding the potential classification of yield-bearing stablecoins as securities in various jurisdictions. He expressed this in a recent Medium post, emphasizing that such a classification would limit accessibility for customers. VanEck, the son of American asset manager Jan VanEck, further stated that Agora plans to launch its dollar-pegged stablecoin, AUSD, on the Ethereum chain in June. Notable yield-based stablecoins in the market include DAI, USDe, and USDM. VanEck also commented on the challenges faced by yield-bearing stablecoins in generating sustainable yield, growing their ecosystems, and addressing conflicts of interest. He cited examples such as BUSD and USDC, which are closely intertwined with their respective exchanges. It's important to note that this article utilizes relevant information to fill content gaps, ensuring a comprehensive and informative piece.
