Stablecoins Are Not Securities, Says SEC—But Yield-Bearing Tokens May Be Different

The U.S. Securities and Exchange Commission issued guidance on stablecoins Friday, writing in a statement that certain types of dollar-pegged tokens are not considered securities in the Commission’s view. However, the SEC notably skipped offering a securities perspective on yield-bearing stablecoins, along with algorithmic stablecoins.

The SEC statement only covers stablecoins that are “designed to maintain a stable value relative to the United States Dollar… on a one-for-one basis, can be redeemed for USD on a one-for-one basis (i.e., one stablecoin to one USD), and are backed by assets held in a reserve that are considered low-risk and readily liquid with a USD-value that meets or exceeds the redemption value of the stablecoins in circulation.”

Such coins, according to the SEC, “do not involve the offer and sale of securities.”

Editor’s note: This story is breaking and will be updated with additional detail.