Circle Comments on SEC vs. Binance Case, Asserts Stablecoins Are Not Securities

Circle, the company behind the USDC stablecoin, has expressed its views on the case brought by the United States Securities and Exchange Commission (SEC) against the crypto exchange Binance. The firm contends that stablecoins should not be classified as securities.

In a recent court filing, Circle maintained that assets pegged to the U.S. dollar, like Binance USD (BUSD) and USDC, do not qualify as securities. The company pointed out that individuals who purchase these assets typically do not expect to make a profit from them. Circle argues that payment stablecoins lack the “features of an investment contract” when considered independently.