SEC Declares Certain Stablecoins Are Not Securities in New Crypto Guidance

The U.S. Securities and Exchange Commission (SEC) has made it clear that not all stablecoins fall under its control. In a recent update, the agency’s staff stated that some stablecoins—especially those used just for sending money or storing value—shouldn’t be considered securities.

This decision is part of a growing shift in how the SEC views crypto. Under new leadership appointed by President Donald Trump, the SEC created a Crypto Task Force to ease pressure on the digital asset industry. So far, this group has stated that memecoins, crypto mining, and now certain stablecoins don’t need to follow the same rules as stocks or traditional investments.

In its latest statement, the SEC’s Division of Corporation Finance said people involved in creating or redeeming these approved stablecoins don’t need to register with the agency. These coins are mainly used for payments, not profits—so the SEC isn’t treating them like investments.

However, not every stablecoin qualifies. The SEC says approved coins must be backed one-to-one with high-quality, easily accessible assets (like cash or U.S. Treasury bills). Coins backed by gold, crypto, or other riskier assets are excluded. That likely rules out popular coins like Tether’s USDT, which includes gold and cryptocurrencies in its reserves. Also, if a coin isn’t redeemable instantly for dollars, it doesn’t meet the criteria.

Circle, the company behind the USDC stablecoin, was quick to support the move. Its president, Heath Tarbert, said:

“The SEC just made it clear—stablecoins like USDC, backed by solid assets, are not securities. But not all stablecoins get this pass just because they call themselves that.”

Congress is also pushing ahead with new laws to officially regulate stablecoins. A bill just moved forward in the House of Representatives, and the Senate is considering a similar one. Both efforts have support from both political parties.

Despite being known as the most stable type of crypto, stablecoins have recently become part of political debates. Trump-backed World Liberty Financial is promoting its own stablecoin, while some lawmakers worry that tech moguls like Elon Musk may launch their own digital currencies.

SEC Commissioner Hester Peirce, who is leading the agency’s crypto task force, said these early steps are important—even if they’re not official rules yet. She added that NFTs might be next in line for similar treatment.

Also Read: Trump’s Crypto Fortune Under Scrutiny – SEC Faces Pressure to Investigate