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Finance
Technology

SEC Classifies USD-Pegged Stablecoins as Non-Securities

Securities and Exchange Commission
United States
Published Apr 4, 2025

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

Cryptocurrency
Stablecoin Issuers
Payment Services
Exchanges

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