The U.S. Securities and Exchange Commission (SEC) has softened its stance on certain stablecoins. The regulatory body announced that it will not classify specific stablecoins as securities if they meet certain conditions. This decision signifies that these altcoins will remain outside the purview of SEC oversight, a significant development for altcoin projects battling regulatory uncertainty.
Introduction of “Covered Stablecoin” Definition
According to Fox Business reporter Eleanor Terrett, the SEC has established a new category called “Covered Stablecoin.” Coins in this category are designed to always maintain a 1:1 ratio with the U.S. dollar. Furthermore, their value must be backed by safe, liquid assets, and the total value of these assets must equal or exceed the amount of stablecoins in circulation.
SEC Altcoin – Stablecoin DecisionStablecoins that meet these criteria will no longer fall under the SEC’s definition of securities. As a result, these coins will be able to trade in the market without SEC approval and regulation. This decision has been pa...
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