SEC Establishes Clear Distinction: Fully-Backed Stablecoins Excluded from Securities Registration

The U.S. Securities and Exchange Commission (SEC) has provided much-needed clarity regarding stablecoins. Specifically, the SEC has determined that fully-reserved, liquid, dollar-backed stablecoins are not considered securities. This means blockchain transactions related to minting or redeeming these stablecoins are exempt from registration requirements under the Securities Act. This decision provides a clear regulatory framework for stablecoin issuers and users, separating them from investment vehicles.