The U.S. Securities and Exchange Commission (SEC) has sent a clear message to the crypto world: Not all stablecoins are securities. That means some stablecoins are exempt from the SEC’s strict rules—at least for now.
The SEC has released new guidance on “covered stablecoins.” These stablecoins are backed one-to-one by safe, short-term assets like the U.S. dollar or Treasury bonds. Stablecoins in this model are not considered securities. However, not every stablecoin meets these criteria. Some, like Tether, may not qualify by holding their reserves in gold or other crypto assets.
The SEC has released new guidance on “covered stablecoins.” These stablecoins are backed one-to-one by safe, short-term assets like the U.S. dollar or Treasury bonds. Stablecoins in this model are not considered securities. However, not every stablecoin meets these criteria. Some, like Tether, may not qualify by holding their reserves in gold or other crypto assets.