**SEC Clarifies Stablecoin Regulations**

The U.S. Securities and Exchange Commission (SEC) has issued new guidance on stablecoins, clarifying that not all are considered securities. Stablecoins backed one-to-one by U.S. dollars or short-term assets like Treasury bills are exempt from stringent SEC regulations, provided they are redeemable at any time and reserves are kept separate from company funds.

However, not all stablecoins meet these criteria. Tether, for instance, holds reserves in gold and other cryptocurrencies, raising questions about its compliance. In contrast, Circle's USDC aligns with the SEC's requirements, offering certainty for fully backed stablecoins.

This regulatory shift underscores stablecoins' political significance, with bipartisan efforts in Congress to legislate their role in maintaining the U.S. dollar's global strength. While algorithmic stablecoins remain under scrutiny, the SEC's stance marks a notable shift in its approach to crypto regulation.