Stablecoins SEC Ruling Yield Tokens Differ

SEC Clarifies Stablecoins Are Not Securities, Excludes Yield-Bearing Tokens

• The SEC announced that certain dollar-pegged stablecoins are not considered securities.
• The guidance applies to stablecoins redeemable for USD on a one-for-one basis and backed by low-risk, liquid assets.
• Tether (USDT) and Circle (USDC) lead the market with reserves of $145 billion and $61 billion, respectively.
• The SEC did not address yield-bearing or algorithmic stablecoins in its statement.
• Stablecoin legislation is under discussion in the U.S. Congress, with potential for up to 1,000 new stablecoins post-regulation.

The SEC’s recent guidance clarifies that specific stablecoins pegged to the U.S. dollar are not securities if they meet particular criteria. However, yield-bearing and algorithmic stablecoins remain unaddressed in this guidance.