The SEC has ruled that fully-reserved, dollar-backed stablecoins are not securities.
For years, the SEC has been making waves by scrutinizing various aspects of the crypto market. Many wondered if dollar-pegged stablecoins like USDT and USDC would fall under the same regulations. They questioned whether stablecoins would be treated like stocks and bonds.
But the SEC has now drawn a clear line in the sand. They stated that fully-backed, liquid dollar reserves mean these stablecoins aren’t securities. This clarification clears up regulatory uncertainty for investors, issuers, and financial institutions. SEC Chairman Gary Gensler acknowledged the significance of this ruling. They state that the agency is focused on protecting investors while also fostering innovation in the crypto space.
The SEC’s decision means that stablecoins like USDC, which are backed 1:1 by reserves and can be easily converted into dollars. They are considered more akin to traditional currency than investment products.
The ruling has also been seen as a step toward more sensible regulation of digital assets. “This is a breath of fresh air,” said one industry insider. They noted that the decision will likely encourage greater adoption and integration of stablecoins into the broader financial system. While the SEC’s decision isn’t a free pass for all cryptos, it does signal that regulators are willing to work with the industry to provide clear guidelines.
Uphold has expanded its offerings by adding support for Polkadot, allowing users to trade and transfer the popular crypto easily. The platform continues to provide fast and efficient transfers with seamless access to stablecoins like USDT and USDC.
Uphold enables users in over 140 countries, including the U.S., to trade a wide range of assets, from cryptocurrencies to fiat currencies and even metals, all within a single, user-friendly platform.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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The SEC has determined that fully-reserved, liquid, dollar-backed stablecoins are not securities. Therefore blockchain transactions to mint or redeem them do not need to be registered under the Securities Act. Helpful clarity from @SECGov.
Uphold now supports Polkadot. Fast and efficient transfers plus easy access to USDT/USDC. @UpholdInc gives users the ability to trade between crypto, fiat, metals in 140+ countries including the US 🇺🇸 Now it’s a gateway into Polkadot.
