SEC Clarifies Rules for USD-Pegged stablecoins
The U.S. Securities and Exchange Commission (SEC) has issued new guidance on stablecoins.the agency aims to provide clearer rules for crypto assets, especially those tied to the U.S. dollar.
The SEC focuses on what it calls “Covered Stablecoins.” These are stablecoins that keep a steady value relative to the U.S. dollar. They can be exchanged for USD at a 1:1 ratio. Examples include Tether (USDT) and USDC.
Covered stablecoins are backed by low-risk, liquid assets. These assets must be worth at least as much as the stablecoins in circulation. This ensures the stablecoins can always be redeemed for USD.
The SEC’s statement excludes other types of stablecoins, like algorithmic or yield-bearing ones. It also doesn’t cover stablecoins pegged to assets other than the U.S.dollar.
According to the SEC,selling Covered Stablecoins doesn’t count as an investment contract. This means they don’t fall under the SEC’s jurisdiction. The agency explains that buyers of these stablecoins don’t expect returns.They are not meant for speculative trading or investment.
Issuers can use the money from selling these stablecoins to fund their reserves. People involved in creating and redeeming Covered Stablecoins don’t need to register with the SEC. This guidance aims to clarify crucial points for issuers.
