The U.S. Securities and Exchange Commission (SEC) has clarified that certain stablecoins do not fall under its jurisdiction as securities. The SEC’s Division of Corporation Finance stated that these stablecoins, used for commerce, payments, money transmission, and value storage, are not considered investments. The statement specifies that transactions involving the creation and redemption of these stablecoins do not require registration with the SEC. However, the statement’s definition might exclude Tether’s USDT, as it does not allow reserves in precious metals or other crypto assets, and requires immediate redemption for dollars. Circle’s USDC, on the other hand, fits the criteria outlined by the SEC. This clarification follows similar statements regarding memecoins and proof-of-work crypto mining. Meanwhile, legislative efforts are underway, with the House Financial Services Committee advancing a stablecoin bill, and the Senate preparing to consider a similar measure.
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