The US Securities and Exchange Commission (SEC) has issued a significant ruling, declaring that dollar-backed stablecoins are not considered securities under federal law. This decision means issuers of such stablecoins will no longer need to register their mint and redemption transactions under the Securities Act. The SEC’s latest move is part of broader efforts to regulate the cryptocurrency space more effectively. 2023 has seen significant activity in this area, with the recent passage of the STABLE Act – designed to create regulations around stablecoins. The SEC’s decision comes amidst a flurry of legal and regulatory developments in the crypto landscape. Notably, David Sacks, advisor on stablecoin regulation under Trump’s administration, commented that fully-reserved, liquid, and dollar-backed stablecoins are not subject to securities classification. This clarification provides clarity on which cryptocurrencies fall under existing securities regulations.