BREAKING: The SEC Just Shocked the Crypto World!

Stablecoins Are Not Securities — At Least Most of Them.

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On April 4th, 2025, the U.S. SEC made its boldest move yet — declaring that most stablecoins do not count as securities.

Yes, you heard that right. After years of regulatory confusion, lawsuits, and courtroom drama…

America's top financial cop has officially drawn a line in the sand.

What does this mean?

According to the SEC’s Division of Corporate Finance:

If a stablecoin is backed 1:1 by the U.S. dollar, redeemable at that rate, and properly collateralized — it won’t be treated as a security.

No more registration headaches. No more legal limbo.

Just clarity.

But here's the catch…

This only applies to what the SEC calls “Covered Stablecoins.”

Think USDC, USDP, or even PayPal’s PYUSD.

Algorithmic stablecoins — the ones that rely on smart contracts and not traditional collateral — are still in the regulatory shadows.

And the SEC made it clear: More rules are coming.

There’s another twist too…

The SEC says stablecoins shouldn’t pay interest to holders.

This means platforms can’t promise “yield” or “earnings” just for holding your stablecoins.

It’s a firm “no” to DeFi-style savings accounts — for now.

This directly contradicts what Coinbase CEO Brian Armstrong pushed for last week, asking Congress to let stablecoin issuers act like banks and share profits.

So while this is a win for the industry… the battle isn't over.

Stablecoins just got one step closer to mainstream acceptance.

Regulatory clarity = institutional confidence.

And that could trigger the next wave of crypto adoption.

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