SEC Clarifies Stablecoin Stance: Minting and Redemption Not Subject to Registration

The SEC announced on Friday that 'covered' U.S. dollar stablecoins are not considered securities. Minting and redeeming stablecoins, which maintain a stable value relative to the U.S. dollar and are backed by reserves, do not require registration with the commission. These stablecoins are designed and marketed solely as tools for payments, money transmission, and value storage, without granting holders interest, profits, governance rights, or ownership claims. The SEC emphasized that these tokens are not promoted as profit-generating instruments. This clarification provides legal clarity for stablecoin issuers, fintech firms, and crypto payment providers operating in regulatory uncertainty. The SEC's criteria for covered stablecoins are consistent with regulations stipulated in the GENIUS stablecoin bill and the Stable Act of 2025. These legislative efforts aim to protect the U.S. dollar's status as the global reserve currency through stablecoins backed by U.S. dollars and government securities.