Overview

• The SEC announced that certain dollar-pegged stablecoins, backed by low-risk, liquid assets and redeemable one-to-one for U.S. dollars, are not considered securities.
• Guidance excludes yield-bearing and algorithmic stablecoins, leaving their regulatory status unclear for future determination.
• Transactions involving the minting and redeeming of covered stablecoins do not require registration under the Securities Act, according to the SEC's statement.
• The guidance reflects a broader shift under Trump-appointed SEC leadership, emphasizing clarity and collaboration over enforcement-heavy approaches.
• Bipartisan efforts in Congress are progressing to establish federal standards for stablecoin issuance, with both the House and Senate advancing related bills.