Stablecoins Are Not Securities, Says SEC—But Yield-Bearing Tokens May Be Different

Trump's SEC says that stablecoins tied to and backed by the U.S. dollar generally aren't securities—but some questions remain.

The U.S. Securities and Exchange Commission issued guidance on stablecoins Friday, writing in a statement that certain types of dollar-pegged tokens are not considered securities in the Commission's view. However, the SEC notably skipped offering a securities perspective on yield-bearing stablecoins, along with algorithmic stablecoins.

The SEC statement only covers stablecoins that are "designed to maintain a stable value relative to the United States Dollar... on a one-for-one basis, can be redeemed for USD on a one-for-one basis (i.e., one stablecoin to one USD), and are backed by assets held in a reserve that are considered low-risk and readily liquid with a USD-value that meets or exceeds the redemption value of the stablecoins in circulation."

Such coins, according to the SEC, "do not involve the offer and sale of securities."

Editor's note: This story is breaking and will be updated with additional detail.

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