Ah, the illustrious US Securities and Exchange Commission, that venerable institution of financial decorum, has bestowed its approval upon the audacious application from Figure Markets for a yield-bearing stablecoin. This delightful contraption promises to allow users to earn interest payments on their holdings — a veritable signal of the regulator’s intent to embrace the burgeoning stablecoin market with open arms, or perhaps just a polite nod. 💁♂️
According to the regulatory scrolls that graced the SEC’s website on the 18th of February, the exchange operator Figure Markets has received the coveted green light to unveil its US dollar-pegged YLDS stablecoin. This charming little token offers a yield of 0.5% to its holders, and is registered as a security with the SEC, because why not add a touch of legitimacy to this financial masquerade? 🎭
Figure Markets’ illustrious CEO, Mike Cagney, regaled Fortune with tales of how this application was submitted to the SEC over a year ago. One can only imagine the bureaucratic ballet that ensued! 💃
“If I can hold this [stablecoin], if I can self-custody this, if it pays me interest, and I can actually use it to transact, what do I need a bank for?” mused Cagney, as he pondered the existential crisis of modern banking. A question for the ages, indeed! 🤔
While Figure Markets may bask in the glory of being the first to receive approval for a yield-bearing stablecoin in the US, it is not alone in this whimsical endeavor. As reported by the ever-watchful CryptoMoon, Tether co-founder Reeve Collins is preparing to launch a decentralized stablecoin that promises interest in the latter half of the year. Because who doesn’t want more options in this delightful financial circus? 🎪
Collins’ forthcoming Pi Protocol will allow users to mint a stablecoin in exchange for a yield-bearing token. A splendid idea, if one enjoys the thrill of minting! 🍀
Stablecoin Regulation Takes Center Stage
The stablecoin market is flourishing at a time when US lawmakers have prioritized the creation of regulations that are as friendly as a golden retriever at a picnic. 🐶
As S&P Global recently noted, US regulators are grappling with various regulatory themes regarding stablecoins, including reserve management and transparency, integration with traditional financial systems, and the delightful chaos of jurisdictional fragmentation. What a tangled web we weave! 🕸️
Meanwhile, the European Union, Hong Kong, and Singapore have made strides in crafting a comprehensive approach to stablecoins, while the US seems to be lagging behind, perhaps enjoying a leisurely stroll in the park. 🌳
On the 5th of February, Republican lawmakers French Hill and Bryan Steil presented a draft version of the STABLE Act, which aims to provide clearer regulatory guidance for stablecoin issuers. Former Commodity Futures Trading Commission Chair Timothy Massad remarked that the draft is a commendable first attempt, yet still misses the mark on several crucial themes. A classic case of “close, but no cigar!” 🎉
“The STABLE Act has many features I support, such as full reserves for tokens and limitations on the activities of an issuer, but there are many areas where it is deficient,” Massad lamented during a subcommittee hearing in Washington, DC. A tale as old as time! ⏳
The proposal “is substantially weaker than what was negotiated between the former committee chair and the ranking member last fall,” said Massad, as he shook his head in disbelief. Truly, the world of finance is a stage, and we are but players! 🎭
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2025-02-20 20:23