The U.S. Securities and Exchange Commission (SEC) has issued fresh guidance concerning stablecoins, potentially enhancing the acceptance of these coins that are tied to the dollar. This development follows the initiation of Project Crypto, which serves as a strategic outline aimed at establishing the U.S. as a leading hub for cryptocurrency.
New Stablecoin Guidance from the SEC
As reported by Bloomberg, the SEC has introduced new staff guidelines that allow certain stablecoins to be regarded as cash. This means holders of stablecoins backed by the dollar or other asset classes could list them as cash equivalents, provided they come with a guaranteed redemption right.
The guidance primarily applies to stablecoins supported by dollars or other liquid reserve assets like short-term treasury bills, as stipulated by the GENIUS Act. This implies that businesses holding compliant stablecoins might classify them as cash equivalents rather than digital assets.
This policy change could drive wider adoption of stablecoins, particularly among public companies, as the SEC now potentially considers these coins as cash equivalents. This follows just a week after the launch of Project Crypto, which seeks to establish regulatory clarity for the sector and position the U.S. as a global leader in crypto.
Previously, the SEC stated that stablecoins are not securities, clarifying that such stablecoins are those maintaining a consistent value compared to the U.S. dollar on a one-for-one basis. They can be exchanged for a dollar on this basis and are supported by low-risk, liquid reserves.
In light of the GENIUS Act, SEC Chair Paul Atkins commended stablecoins for their significant market role, highlighting their ability to reduce costs and mitigate market risks.
Initiatives Following Project Crypto Launch
In addition to the recent stablecoin guidelines, the SEC has been proactive since Project Crypto’s inception. This includes the introduction of new crypto roundtables, which will be conducted by the Commission’s Crypto Task Force across the U.S. These discussions are scheduled from August 4 to December 5, covering ten different cities.
SEC Commissioner Hester Peirce, who heads the Crypto Task Force, mentioned that these roundtables are designed to gather input from crypto stakeholders who couldn’t participate in earlier events in Washington, D.C.
Recently, the SEC’s Division of Corporation Finance declared that activities and tokens associated with liquid staking do not constitute securities. This paves the way for the potential inclusion of liquid staking tokens in crypto ETFs, starting with Solana ETFs.
