💥Green Light from the SEC for Stablecoin Market: Some are No Longer Securities!
The updated classification marks a critical turning point in the regulatory framework for digital assets, providing long-awaited clarity for stablecoin issuers and market participants.
On April 4, the U.S. Securities and Exchange Commission (SEC) issued new guidelines stating that certain fiat-collateralized stablecoins would not be classified as "securities" and therefore would be exempt from specific transaction reporting obligations.
This updated classification provides the long-needed legal clarity for stablecoin issuers and market participants while marking a significant milestone in the regulation of digital assets.
According to the SEC's statement, for a digital asset to be considered a "covered stablecoin," it must meet certain strict criteria: These assets must be fully backed by physical U.S. dollars or low-risk, short-term liquid instruments and must be redeemable at a 1:1 ratio against the U.S. dollar.