The United States Securities and Exchange Commission (SEC) issued a statement on April 4 establishing guidelines for stablecoins.

In a statement on April 4, the agency coined a new term, "backed stablecoins," classifying them as non-securities and exempting transactions of such tokens from reporting requirements.

According to the SEC's definition, a "backed stablecoin" is fully backed by reserves of physical fiat or short-term, low-risk, high-liquidity instruments, and is fully redeemable at a 1 to 1 ratio with US dollars.