Senator Pat Toomey asks SEC Chairperson Gary Genzler what determines whether a cryptocurrency is a security or not.
On the issue of stable coins, Toomey points out that stable coins like USDC, which is a coin that is privately pegged to the dollar fail point # 3 of the Howie test — the expectation of profit.
- An investment of money
- In a common enterprise
- With the expectation of profit
- To be derived from the efforts of others
He pushes Genzler to publically announce what the standards are but Genzler avoids answering.
This leads many to suspect that Genzler is trying to protect the banks rather than investors.