Catenaa, Thursday, April 10, 2025- The US Securities and Exchange Commission (SEC) on Friday declared that “covered” dollar-pegged stablecoins, including Tether’s USDT and Circle’s USDC, are not securities, and minting or redeeming them will not require SEC registration.
The clarification, issued in an agency statement, confirms that stablecoins backed by reserves and maintaining a 1:1 ratio with the U.S. dollar do not fall under federal securities laws.
It applies to those involved in issuing or redeeming such tokens.
The ruling is expected to strengthen confidence in stablecoins and give momentum to legislation making its way through Congress.
The House Financial Services Committee this week advanced the STABLE Act, which aims to establish a regulatory framework for dollar-backed digital assets.
The bill includes capital and anti-money laundering requirements.
Tether and Circle, the two largest stablecoin issuers, currently manage a combined supply of more than $200 billion. Analysts predict that figure could surge into the trillions if traditional financial institutions begin entering the space.
The SEC emphasized that entities minting or redeeming covered stablecoins need not notify or register those activities. A separate yield-bearing stablecoin was approved as a security earlier this year.
