> I feel pretty good about considering stable coins securities.
Take that further to airline points and Chipotle points. If the stablecoin does not provide returns to the holder, how is it an investment contract?
Take that further to airline points and Chipotle points. If the stablecoin does not provide returns to the holder, how is it an investment contract?
No-one is holding those with an "expectation of profit". Whereas essentially the only use of "stablecoins" is as investment schemes; even if someone isn't expecting the value of their stablecoin to rise against USD, they're expecting it to rise against something.
Coinbase, who co-founded USDC, absolutely pays interest on USDC: https://www.coinbase.com/usdc
(they call it rewards instead of interest in an attempt to avoid regulation, but it is functionally the same thing)
> Whereas essentially the only use of "stablecoins" is as investment schemes; even if someone isn't expecting the value of their stablecoin to rise against USD, they're expecting it to rise against something.
Stablecoins are very frequently used as transfer tokens for remittances, wages and ecommerce. We pay overseas staff in USDC for example (it's quicker and easier than bank transfers).
Regardless, that's not why people hold stable coins.