The US SEC has released new guidance for stablecoins, in a move that could further boost the adoption of these dollar-pegged coins. This follows the launch of Project Crypto, which the Commission has highlighted as a roadmap to make the US the crypto capital.
US SEC Releases New Guidance For Stablecoins
According to a Bloomberg report, the US SEC has released new staff guidance that certain stablecoins could be treated as cash. Under this guidance, holders of dollar-backed stablecoins, which are backed with another asset class, could classify these coins as cash equivalents if they have a guaranteed redemption right.
This will typically refer to stablecoins that are backed by the dollar or other liquid reserve assets such as short-term treasury bills, as provided by the GENIUS Act. This US SEC guidance indicates that companies that hold compliant stablecoins might not need to report them as digital assets but can simply classify them as cash equivalents.
This guidance could promote further adoption of stablecoins, especially among public companies, since the US SEC is suggesting that it views these coins as cash equivalents. Meanwhile, it comes just a week after the Commission launched Project Crypto in a bid to position the US as the global crypto leader by providing regulatory clarity for the industry.
It is also worth noting that the US SEC had earlier confirmed that stablecoins were not securities. Back then, it explained that the non-security stablecoins are ones that are designed to maintain a stable value relative to the US dollar on a one-for-one basis. Furthermore, they can be redeemed for a dollar on this one-for-one basis and are backed by assets held in reserve that are considered low risk and liquid enough in dollar value.
Meanwhile, US SEC Chair Paul Atkins was full of praise for stablecoins following the passage of the GENIUS Act. He described them as being very important for the market, as they can help lower costs and mitigate market risk.
SEC’s Moves Since The Launch Of Project Crypto
Besides the new guidance on stablecoins, the US SEC has also made further moves since the launch of Project Crypto. This includes the announcement of new crypto roundtables, which the Commission’s Crypto Task Force intends to carry out around the US. According to the schedule, the roundtables will span from August 4 to December 5 and cut across ten cities.
US SEC Commissioner Hester Peirce, who leads the Crypto Task Force, explained that they want to use this as an avenue to hear from crypto stakeholders who couldn’t make it for the earlier roundtables that took place in Washington, D.C.
Meanwhile, more recently, the US SEC’s Division of Corporation Finance announced that liquid staking activities and tokens are not securities. This guidance means that the Commission could approve the inclusion of liquid staking tokens in crypto ETFs, starting with the Solana ETFs.
