In a bold move, the U.S. Securities and Exchange Commission (SEC) has introduced new guidelines that could greatly impact stablecoin assets . For the first time, certain stablecoins, now called covered stablecoins, might not be treated as securities. This change could give companies like Tether’s USTD and USDC more freedom, but it also means they must follow strict rules. What Are Covered Stablecoin Assets? According to the SEC, covered stablecoins are not meant to be investments. Instead, they must be stable, fast, and reliable ways to send or store money. They should not promise any profits, voting rights, or ownership. To be a covered stablecoin, the token must be fully backed 1:1 by the U.S. dollar, supported by low-risk, accessible assets, and always be able to be redeemed at full value. This makes covered stablecoins different from investment products, which aim to make people money. The SEC says these stablecoins will not be treated as securities under U.S. law because they are sold as “digital dollars,” not investments. David Sacks, a key White House crypto advisor, supports the change. He said it would ease rules for dollar-backed stablecoins backed by low-risk assets. Tether’s Response to the New Guidelines Tether, the company behind the USDT stablecoin , is already considering adjusting to the SEC’s new rules. Various assets, including cash, U.S. Treasuries, Bitcoin, and gold back USDT. However, the SEC’s new rules require stablecoins to be backed only by cash or safe assets. This means USDT might not qualify as a covered stablecoin. Tether is considering launching a new stablecoin that would only be backed by cash and U.S. Treasuries. This new coin would be designed to meet all the SEC’s rules. Meanwhile, USDT would likely continue to be used in markets with less stringent regulatory policies . While many welcome the new rules, not everyone in the SEC agrees. Commissioner Caroline Crenshaw has expressed concern that the new guidelines may oversimplify how stablecoins work. She believes the risks of these tokens are being ignored, and the new rules might confuse people about how stablecoins function. The Growing Role of Stablecoins Despite some uncertainty, the stablecoin market is growing quickly. In the first quarter of 2025, the market added over $30 billion. This shows that the demand for stablecoins is strong, even though the crypto market faces challenges. The SEC’s clarifying the rules around stablecoins could help these digital currencies become more trusted and widely used. It could also lead to more companies creating stablecoins that comply with U.S. regulations. The post U.S. SEC Unveils New Stablecoin Rules, Tether Aims To Comply appeared first on TheCoinrise.com .
