The SEC emphasizes that stablecoins are not securities.

The guidance from the SEC's corporate finance division clarified the stablecoin rules.
According to the department, stablecoins are not securities.
The explanation of the stablecoin rules follows the progress of the House of Representatives and the Senate.
On Friday, the SEC's Division of Corporation Finance released a consultation on stablecoins, emphasizing that dollar-backed stablecoins are not securities.
SEC clarifies stablecoin issuance
The guidance from the SEC's corporate finance division clarifies the regulation of crypto stablecoins. The document covers "backed stablecoins," which are pegged to the US dollar and supported by low-risk, highly liquid reserve assets, the value of which is equal to or greater than their circulating value.
According to the department, these stablecoins are not securities offerings. Miners and redeeming parties of stablecoins do not need to report their transactions to the SEC.
The document follows the legislators' efforts to clarify the regulation of stablecoins. Members of the House and Senate committees want the Stable Act and the Genius Act to regulate stablecoin payments in the United States.
The department emphasized that stablecoins are used for payments, not investments. This contradicts the cryptocurrency industry's claim that the STABLE Act should allow issuers to offer stablecoin yields.
The guidelines indicate that stablecoin purchasers should not be driven by profit, as issuers use the profits from stablecoins to fund reserves.
The Reeves analysis in Reves v. Ernst & Young (1990) helped the department explain its conclusion. The SEC used it to determine whether financial instruments, particularly notes, qualify as securities under the Securities Exchange Act of 1934.
"The department believes that protected stablecoins do not fall under securities," the consultation stated.
In March, President Donald Trump stated that he hopes to approve stablecoin legislation before August, urging lawmakers to expedite the process.
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