U.S. SEC: Certain types of stablecoins are not considered securities, and the minting or redemption process does not require registration
ChainCatcher News, the U.S. Securities and Exchange Commission's Division of Corporation Finance has issued a statement regarding stablecoins, indicating that under current regulations, certain types of crypto assets (i.e., "Covered Stablecoins") are not considered securities. Individuals involved in the "minting" and redemption processes of stablecoins are not required to register these transactions with the Commission under the Securities Act, nor do they need to comply with any of the registration exemptions under the Securities Act.Covered Stablecoins are designed to maintain a stable value relative to the U.S. dollar or "USD" on a one-to-one basis, and can be redeemed for U.S. dollars on a one-to-one basis (i.e., one stablecoin for one dollar). They are backed by assets held in reserve that are considered low-risk and liquid, with a dollar value that meets or exceeds the redemption value of the stablecoins in circulation. These stablecoins are primarily used for payments, transfers, and store of value, and are not intended as investment tools, with their sale and trading not involving the provisions of securities laws.
