What Stablecoins Might Become

Some cryptocurrency companies have taken a proactive approach to finding existing regulations they believe more adequately cover what their stablecoin would do. Avanti – a special purpose depository institution, which is a bank with only a state charter, a classification that was created under new legislation in Wyoming – seems to believe that the Uniform Commercial Code, which (in part) dictates standards for banknotes, would allow for the issuance of a “digital banknote.” If its token is considered a banknote, then it will be exempted from regulation as a security. That also may in part explain why digital asset company Paxos has a bank charter and payments company Circle wants one.

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