Supervisory Memorandum - 1037, which published by the financial watchdog examines the regulatory treatment of digital currencies under the Texas Money Services Act and addresses current trends in the field, including the introduction of stablecoins to the market. Stablecoins are a kind of centralized cryptocurrency backed by the issuer with conventional currency, precious metals and sometimes algorithms.
The Act reads that receiving a sovereign-backed stablecoin in exchange for “a promise” to make it available at a future date or different location may be recognized as a money transfer. As such, a sovereign-backed stablecoin may be considered money or money value under the Money Services Act.
“However, when a cryptocurrency transaction does include sovereign currency, it may be money transmission depending on how the sovereign currency is handled. A licensing analysis will be based on the handling of the sovereign currency,” it is further stated.
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