The U.S. Securities and Exchange Commission (SEC) sent a clear message to the crypto world: Not all stablecoins are securities. This means that some stablecoins are exempt from the SEC's strict rules—at least for now.
The SEC published new guidance on "covered stablecoins." These stablecoins are backed on a one-to-one basis by safe, short-term assets like U.S. dollars or Treasury bills. Stablecoins in this model are not considered securities. However, not every stablecoin meets these criteria. Some, like Tether, may not fall under this coverage by holding their reserves in gold or other crypto assets.
The SEC published new guidance on "covered stablecoins." These stablecoins are backed on a one-to-one basis by safe, short-term assets like U.S. dollars or Treasury bills. Stablecoins in this model are not considered securities. However, not every stablecoin meets these criteria. Some, like Tether, may not fall under this coverage by holding their reserves in gold or other crypto assets.