Are Stablecoins Generally Considered “Financial Instruments” under Existing Regulations?

Generally, no, but this is evolving. Stablecoins are often treated as a new category, like the EU's 'E-money Tokens' (EMTs) or 'Asset-Referenced Tokens' (ARTs) under MiCA, rather than traditional financial instruments.

Regulations are focusing on their use as a means of payment or store of value and addressing risks like reserve management and consumer protection. However, if a stablecoin is structured to offer an investment return or is part of a derivative, it could fall under financial instrument rules.