SEC Declares April 7, 2025: US Dollar Stablecoins Like USDT and USDC Are Not Securities, Excluding Algorithmic and Yield-Bearing

The U.S. Securities and Exchange Commission (SEC) has issued a statement clarifying that certain stablecoins, specifically those pegged to the U.S. dollar, do not constitute securities. This guidance, released by the SEC's Division of Corporation Finance, indicates that stablecoins like Tether (USDT) and USD Coin (USDC) are categorized as 'covered stablecoins' and thus fall outside the securities framework. However, the statement comes with caveats, as it excludes algorithmic and yield-bearing stablecoins from this classification. It is important to note that this guidance is not yet a binding rule or formal approval from the full SEC Commission. The announcement aligns with ongoing legislative developments concerning stablecoins, as lawmakers prepare to introduce a new bill addressing this sector.

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