Nikolas Sargeant
The U.S. Securities and Exchange Commission (SEC) has announced that certain stablecoins will not be classified as securities under its new guidelines. This decision is a significant development for the cryptocurrency industry, providing much-needed clarity on the regulatory treatment of stablecoins, which are digital assets pegged to a stable value, typically the U.S. dollar. The SEC's guidelines aim to streamline the legal framework surrounding these assets, ensuring that they are subject to appropriate oversight without stifling innovation.
In the announcement, the SEC highlighted that stablecoins which meet specific criteria will be excluded from the definition of securities. This includes factors like how the stablecoin is issued and its primary use. For stablecoins backed by traditional fiat currencies, the SEC seems to favor regulatory treatments that align more closely with traditional financial instruments, rather than classifying them as speculative securities.
The SEC has determined that fully-reserved, liquid, dollar-backed stablecoins are not securities. Therefore blockchain transactions to mint or redeem them do not need to be registered under the Securities Act. Helpful clarity from @SECGov. pic.twitter.com/oUsq0snLaF
— David Sacks (@davidsacks47) April 4, 2025
The decision marks a turning point for the cryptocurrency industry, particularly for stablecoin issuers who have been uncertain about how to comply with U.S. regulations. With these new guidelines, companies that issue stablecoins can now operate with greater confidence, knowing their products will not face the same level of scrutiny as other crypto assets like Bitcoin or Ethereum. Earlier this year, Senator Haggerty introduced Stablecoin legislation to the US Senate. However, the SEC has also made it clear that stablecoin issuers must comply with anti-money laundering (AML) and know-your-customer (KYC) regulations.
Led by Paul Atkins, this move is seen as a step forward in the SEC’s broader approach to regulating the cryptocurrency market, helping to strike a balance between fostering innovation and ensuring financial stability. Experts believe that the guidelines could also prompt other global regulators to follow suit, creating a more harmonized approach to cryptocurrency oversight worldwide.
