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  • FaceDeer@kbin.social
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    1 year ago

    Stablecoins seem like one of the least likely token types to count as a security. To be a security it has to pass the “Howey test”, which requires three criteria:

    • An investment of money
    • In a common enterprise
    • With an expectation of profit, derived from the efforts of others

    Buying a stabletoken could be argued to be “an investment of money in an common enterprise”, but I don’t see how there’s an expectation of profit derived from the efforts of others - stabletokens are specifically intended to not rise in value. If I buy a stabletoken and its value goes up it’s a failure as a stabletoken.

    • dhork@lemmy.world
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      1 year ago

      There’s still an expectation there, the expectation is that the return is zero. In fact, it’s the efforts of others that are ensuring the profit is zero. Isn’t zero a number?