SEC Classifies USD-Pegged Stablecoins as Non-Securities
Summary
On April 4, 2025, the SEC's Division of Corporation Finance issued guidance classifying USD-pegged stablecoins as non-securities when backed one-to-one by low-risk, non-rehypothecated reserves. This landmark guidance provides significant regulatory clarity for stablecoin issuers and exchanges, complementing the GENIUS Act's broader stablecoin framework enacted in July 2025.
Key Changes
- USD-pegged stablecoins classified as non-securities under specific conditions
- Requires one-to-one backing by low-risk liquid reserves
- Reserves cannot be rehypothecated or lent out
- Complements GENIUS Act federal stablecoin framework
Affected Industries
Source
Key Dates
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