Valerie Szczepanik, the senior adviser for digital assets at the United States Securities and Exchanges Commission (SEC), reportedly made a statement regarding securities on 15 March 2019 during the SXSW conference. She stated that stablecoins could experience problems under current securities laws. She broke down the three different categories of stablecoins: one being tied to assets, another tied to fiat currency, and the last category uses market financial mechanisms to keep the price stable. The last category potentially runs into the issue of securities due to it’s price fluctuation being controlled by a central party. Being labeled as securities is “fundamentally incompatible” with the decentralized nature of most cryptos, and according to the CEO of Basis, a US based stablecoin, they will be shutting down and refunding investors due to them not being able to avoid a securities classification for their secondary token. Although cryptocurrency such as ETH, seem to be safe from the label of security, this could potentially impact the stablecoin market at large.