SEC Clears Path for Dollar-Backed Stablecoins

The US Securities and Exchange Commission (SEC) has issued a major development for the cryptocurrency industry: stablecoins backed by dollars are no longer considered securities under U.S. law. This ruling, announced on April 4th, will significantly benefit top dollar-backed tokens like Tether (USDT) and USDC (Circle). The SEC clarifies that these ‘covered’ stablecoins — those fully backed by U.S. dollars and easily convertible to fiat currency — are not subject to the same registration requirements as other types of cryptocurrencies.