A few months ago it was clear that companies where getting very tired of waiting around for the , House and general government to make up their minds about what had to be done in order to launch their own tokens.
They saw the success of boosting billions of dollars of revenue from treasury investments and quickly understood if they didn't launch their own stable coin otherwise miss out on this massive opportunity.
Stable Coins
Stable coins do make sense when you're trying to price in products and services and want to offer up somewhat "stable" defi swapping platform. They have grown in popularity and are mainly a so called safe haven for investors to dump Fiat funds into and minimize risk while still being able to take part if a vast majority of what crypto has to offer.
However I stated years ago when a push was being done to adopt stable coins that it would also bring the perfect foundation for governments, sec and other authority figures to jump in and start hammering the crypto world. That's because a stable coin is meant to mimic the price of a USD or the fiat currency of the united states government. Thus they would have the authority to say yes or no to something being allowed to represent their currency.
Just a few days ago Circle come out with a huge announcement that they would no longer be "minting" new tokens for "retail users" that's a fancy way of saying you ever day folk and instead focusing on only large scale investors moving forward or what are know as accredited investors.
This move is to put them better in line to what tether currently does. USDT only allows for minting and redemptions of $100,000 minimum at a time.
Paypals PYUSD
Paypal launched its own stale coin token called PYUSD only a few months ago and it took off at a rather decent rate. However as of November 1st (yesterday) Paypal received a subpoena from the requesting documents.
This further ushers in once again the SEC blindly randomly picking and choosing who and when they attack with these mindless actions.
You see if a bank such as wellsfargo issues you an account in which you add your money into (arguably that money is digital in nature and the bank is only required to hold 10%) it is not classed as a "security" thus if paypal issues a token that simply represents a holding aka savings account of which it currently does just like USDC coinbase's token then it also should fall under not being labeled as a security and be fair game.
In reality there should be no grounds for the SEC to be stepping in to try and block these stablecoins. They also seem to not do it to every company. For example it wasn't long after Paypal rolled out theirs that Visa rolled out a version of their own.
This clear constant attacking though however is targeted towards large companies that are able to take on the SEC so in a way it could be yet more blasts to discredit the SEC and build a foundation groundwork for others to follow.
