Crypto Still Excluded From Legal Tender Status

South African regulators have reiterated that cryptocurrencies and stablecoins are neither money as defined in the country’s National Payments System Act nor funds, and are therefore not legal tender. In a joint statement, the South African Reserve Bank (SARB) and the Financial Sector Conduct Authority (FSCA) said they are already conducting analytical work to explore the regulatory treatment of crypto assets for payment purposes.

The joint regulatory clarification responds directly to a shifting financial landscape in South Africa, where digital assets are rapidly transitioning from speculative investments to mainstream transactional tools. This domestic migration toward decentralized finance has intensified pressure on current monetary policies. Prominent South African economist Dawie Roodt argues that the country’s existing exchange control laws are fundamentally incompatible with modern capital flows, warning that a failure to modernize these regulations will inevitably accelerate consumer abandonment of the local currency in favor of more stable, digitized alternatives.

However, the regulators counter that widespread crypto adoption could compromise the efficiency of the National Payments System (NPS) and trigger broader systemic risks across the financial sector. To mitigate these vulnerabilities, the South African government aims to expand the regulatory perimeter of the NPS Act.

“The revision of the NPS Act will include provisions that would enable the SARB, at its discretion, to declare and regulate payment instruments other than money, such as crypto assets. Among other aspects, this will provide the SARB with the authority and discretion, should a compelling case arise, to designate crypto assets as payment instruments for domestic transactions,” the statement reads.

While the SARB is not envisioned to regulate “unbacked” crypto assets as payment instruments, the approach toward stablecoins will be different. Because stablecoins have been determined to possess some characteristics of digital money, they have the potential to be adopted as a payment instrument, the regulators said. Consequently, the Intergovernmental Fintech Working Group (IFWG) is analyzing the applicable use cases of local currency-pegged stablecoins to inform an appropriate policy and regulatory response.

Still, the South African central bank is unlikely to sanction or consider foreign currency-pegged stablecoins as payment instruments for domestic transactions because they “may result in the risk of currency substitution (‘dollarization’), which would weaken the monetary policy transmission.”

NASHVILLE, Tenn. (WSMV) – The Davidson County Sheriff’s Office (DCSO) is warning the public of phone scammers claiming to be deputies to get residents’ money.

DCSO reports that the callers are posing as sheriff’s office employees requesting payments via cryptocurrency, gift cards or mobile apps.

The sheriff’s office warns that deputies will not ask for payments over the phone.

“Verify calls with DCSO or contact the Metro Nashville Police Department at 615-862-8600,” DCSO said.

Why the Sale Matters

The amount is small. Thirty-two coins against a stack of 843,706 BTC represents a fraction of a fraction of the company’s holdings. But the reason for the sale draws attention: proceeds are expected to fund distributions on preferred stock, according to the June 1 Form 8-K filed with the SEC.

Strategy has built its entire identity around accumulation. The company has made more than 110 reported purchases over six years, funded through convertible debt, equity offerings, preferred shares, and operating cash. Selling bitcoin, even 32 coins, runs counter to that positioning.

The Preferred Stock Dividend Picture

Strategy currently carries five series of preferred stock with active dividend obligations. The board declared the following cash dividends on May 30, 2026, all payable June 30:

• STRF (10.00% Strife): $2.50 per share, quarter ending June 30
• STRC (Variable Rate Stretch, 11.50%): $0.9583 per share, month ending June 30
• STRK (8.00% Strike): $2.00 per share, quarter ending June 30
• STRD (10.00% Stride): $2.50 per share, quarter ending June 30
• STRE (10.00% Stream): €2.50 per share, quarter ending June 30

The variable rate on STRC was held at 11.50% effective June 1, 2026.

The USD Reserve

Strategy established a U.S. dollar reserve in December 2025, a management-designated liquidity pool intended to cover preferred stock dividends and debt interest. As of May 31, 2026, that reserve holds $900 million.

The existence of a $900 million cash reserve makes the decision to sell 32 BTC more notable. The company chose to liquidate a small amount of bitcoin rather than draw down its dollar reserve to cover distributions. Following the file going public, BTC’s price shuddered below $72,000 to an intraday low of $71,866.

What the Stack Looks Like Now

As of May 31, Strategy holds 843,706 BTC acquired for approximately $63.87 billion at an average purchase price of $75,699 per coin. The firm also sold 801,994 shares of MSTR common stock between May 26 and May 31, generating $128.3 million in net proceeds under its at-the-market offering program. Combined ATM capacity across MSTR and preferred stock programs totals more than $51 billion remaining.

The Accumulation Record

Strategy made its first bitcoin purchase in August 2020 at roughly $11,652 per coin. Outside a minor 704-coin sale in December 2022 for tax purposes, the company has not publicly reported selling bitcoin. The May 26 to May 31 sale brings the total disclosed liquidations to a still-negligible level relative to holdings, but it confirms that preferred stock obligations now represent a real and recurring cost the firm is willing to cover with BTC when needed.