New Guidance from SEC Reshapes Stablecoin Regulation
The U.S. Securities and Exchange Commission (SEC) announced new guidance on April 4, allowing certain dollar-backed stablecoins to be exempt from classification as "securities," providing greater transparency for investors and issuers. The new classification requires that these currencies be backed by low-risk, liquid assets that are redeemable for dollars at a 1:1 ratio.
The guidance excludes algorithmic and synthetic currencies and prohibits the use of reserves for speculation or covering operational costs. Companies like "Tether" have become some of the largest holders of U.S. bonds, enhancing the geopolitical role of the digital dollar. However, the guidance faced opposition from commissioner Caroline Crenshaw, who described it as misleading and criticized it for excluding small investors.
