SEC Redefines Stablecoins: Covered Coins Not Considered Securities

The U.S. Securities and Exchange Commission (SEC) has clarified stablecoin rules, stating that certain tokens qualify as non-securities if they meet specific requirements. This decision applies to ‘Covered Stablecoins’, which maintain a one-to-one dollar redemption feature and utilize low-risk assets for full backing. The SEC’s recent guidance provides clarity to businesses operating Covered Stablecoins while providing support to their growth within the U.S. crypto regulatory landscape.