New SEC guidelines set specific requirements for dollar-pegged stablecoins.
On April 4th, the U.S. Securities and Exchange Commission (SEC) published new guidelines that classify certain dollar-pegged stablecoins as “non-securities.” This decision marks a shift in cryptocurrency regulation, exempting these assets from the reporting obligations typically required for traditional securities.
According to the document published by the commission, stablecoins that qualify as “covered stablecoins” must meet two criteria:
- Be fully backed by physical dollars or low-risk, short-term liquid instruments;
- Be redeemable at a 1:1 ratio with the U.S. dollar.
The new classification explicitly excludes algorithmic stablecoins and dollar-pegged synthetic tokens that rely on software mechanisms or trading strategies to maintain their peg. The guidelines also prohibit issuers of “covered stablecoins” from mixing reserves with operating funds, offering yields or profit-sharing to token holders, or using reserves for market speculation.
The impact on the future of the dollar
These conditions align with provisions outlined in recent legislative proposals, including the GENIUS Stablecoin Bill introduced by Senator Bill Hagerty and the 2025 Stable Act by Representative French Hill. These bills aim to solidify the status of the U.S. dollar as the dominant global reserve currency, encouraging the issuance of fully backed and transparent stablecoins.
U.S. Treasury Secretary Scott Bessent emphasized the importance of stablecoin regulation during the White House Digital Asset Summit on March 7th, describing it as central to the administration’s strategy for maintaining the dollar’s dominance in the digital age.
Last month, Federal Reserve Chairman Jerome Powell confirmed the central bank’s support for developing a regulatory framework for stablecoins during a Senate hearing, highlighting the importance of protecting consumers and savers.
