SEC Clarifies Stablecoin Regulations: Some Are Exempt From Securities Law

The U.S. Securities and Exchange Commission (SEC) has issued updated guidance on how it will regulate stablecoins, clarifying that certain types of these dollar-pegged tokens are exempt from securities regulations. The SEC defines ‘Covered Stablecoins’ as those that meet specific criteria, including 1:1 backing with US dollars, no profit promises, and limitations on use as investment vehicles.