In its latest position clarifying its regulatory outlook, the U.S. Securities and Exchange Commission (SEC) staff has indicated that most crypto stablecoins do not constitute securities, positioning these widely used tokens outside of the agency’s jurisdiction. This statement, issued on Friday, is part of an ongoing effort by the SEC to delineate clearly which segments of the cryptocurrency market fall outside its regulatory focus, following similar declarations about memecoins and crypto mining operations.
According to the SEC’s Division of Corporation Finance, the process of minting and redeeming stablecoins, such as those issued by Tether (USDT) and Circle (USDC), does not involve offerings or sales of securities. Therefore, these transactions are not required to be registered under the Securities Act, nor must they adhere to its exemption provisions. The SEC further clarified that these stablecoins function fundamentally as transactional tools—instruments meant for commercial exchanges, money transmission, and value storage—rather than serving as investment vehicles.
The SEC’s decision arrives amid legislative action in the U.S. Congress aimed at establishing comprehensive regulation for stablecoin issuers. Recent weeks have seen bipartisan committees in both the House and Senate advancing bills designed to define clear federal standards for stablecoin oversight.
Stablecoins have increasingly become politically sensitive, with debates intensified by initiatives such as the Trump-supported project from World Liberty Financial and concerns among some Congressional Democrats regarding potential endeavors in stablecoin issuance by prominent technology entrepreneurs like Elon Musk.
SEC Commissioner Hester Peirce, a leading advocate of clarity and openness in crypto regulation within the agency, regards these initial nonbinding statements as vital steps toward reversing prior SEC resistance to certain digital asset categories. Peirce has also suggested that forthcoming acknowledgments from the SEC staff could address the regulatory standing of non-fungible tokens (NFTs).
Meanwhile, the SEC’s recently established Crypto Task Force, formed under a directive from interim Chairman Mark Uyeda and supported by a Trump-administration leadership effort to encourage a more accommodating stance toward digital assets, will soon convene another high-level summit focusing on crypto trading platforms and activities.
The agency is also awaiting the potential confirmation of Paul Atkins, President Trump’s nominee for SEC chairman, who recently won approval from the Senate Banking Committee. Under Chairman Uyeda’s interim directives, the regulator has already begun dramatically reshaping its approach to crypto assets, notably dismissing several prominent enforcement actions previously pursued against cryptocurrency firms, with only a few cases remaining active.
