Stablecoins Are Not Securities, Says SEC—But Yield-Bearing Tokens May Be Different
The U.S. Securities and Exchange Commission (SEC) has issued guidance stating that stablecoins pegged to the U.S. dollar are not considered securities. The guidance specifies that these stablecoins must maintain a stable value one-to-one with the dollar, be redeemable for USD on a one-to-one basis, and be backed by low-risk, liquid assets that exceed the value of the stablecoins in circulation. However, the SEC has not addressed the status of yield-bearing stablecoins or algorithmic stablecoins, leaving some ambiguity in this area. The SEC's conclusion suggests that certain dollar-pegged stablecoins do not involve the offer and sale of securities, which could have significant implications for the regulation of these digital assets moving forward.
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