SEC Announced That These Types of Coins Are Not Securities: Here Are the Details! - Coin Bulletin

The U.S. Securities and Exchange Commission (SEC) announced that “covered” or reserve-backed U.S. dollar-based stablecoins are not classified as securities.

The SEC has taken a clearer stance on the regulation of stablecoins, specifically covering major stablecoin issuers such as Tether and Circle. According to the statement, these coins have a fixed value in dollars and are backed by reserves. These stablecoins are not used for investment purposes, but for commercial purposes such as making payments, storing value, and transmitting money.

The SEC’s statement came at a time when the use of stablecoin was rapidly increasing and new regulations were on the agenda. This week, the U.S. House of Representatives Financial Services Committee voted on a bill aimed at regulating stablecoins. The bill called STABLE establishes reserve and capital requirements for dollar-backed stablecoins, one-to-one backing, and standards for anti-money laundering.

Regulations may increase the use of stablecoins

The SEC’s statement is seen as an important step during a period when the use and regulation of stablecoins has increased. In the event that large financial institutions like Bank of America issue stablecoins, the total supply in the market is expected to reach trillions of dollars. Circle’s president Heath Tarbert stated, “The clear boundaries drawn by the SEC indicate that stablecoins supported by high-quality liquid assets like USDC are not securities,” emphasizing that this statement does not cover other digital assets in the sector.

The future regulations of stablecoins may lead to significant changes in the industry and the adoption of new laws. The SEC’s stance may provide support for new regulations and make it possible for stablecoins to gain wider acceptance.