The U.S. Securities and Exchange Commission (SEC) has issued a definitive ruling, clarifying that dollar-backed stablecoins are not securities under American law. This decision, aligning with existing court rulings, is expected to significantly impact the cryptocurrency landscape by fostering increased adoption of these digital assets and reducing regulatory uncertainty. The SEC’s announcement comes after several years of legal battles over stablecoin classification. Previously, the SEC had taken a cautious stance on some stablecoins, particularly those backing cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH). This clarification will benefit companies such as Tether and Circle, who rely heavily on U.S. dollar reserves to maintain their stablecoin value. The ruling is predicted to contribute to greater financial innovation in the decentralized finance sector by facilitating wider integration of stablecoins into new financial products and services.