SEC officials clarify that some cryptocurrency stablecoins are not classified as securities

In its latest statement on what doesn't qualify as digital asset securities, the Securities and Exchange Commission included stablecoins like dollars but may not count Tether.

Jesse Hamilton | Edited by Nikhilesh De Updated April 4, 2025, 9:22 PM Published April 4, 2025, 7:38 PM

What to consider:

• The U.S. Securities and Exchange Commission has updated its list of cryptocurrencies that are not securities with a new statement saying that most stablecoins do not fall under its jurisdiction.
• The relatively narrow definition proposed in the statement may not cover Tether, the world's most popular stablecoin.
• The statement on stablecoins further clarifies recent similar statements by the SEC on memecoins and cryptocurrency mining.

In a recent filing, the U.S. Securities and Exchange Commission said it has no dealings with certain stablecoins or their issuers, outlining categories of the cryptocurrency sector in which it has no legitimate interest.

Since the agency took over from President Donald Trump and formed the Cryptocurrency Task Force to ease pressure on the digital asset space, its staff has issued a series of statements aimed at clarifying the crypto areas that fall outside its jurisdiction — currently including meme coins and proof-of-work cryptocurrency mining. Now, some stablecoins have been added to that list. The SEC’s Division of Corporate Finance on Friday issued a statement — not yet a binding rule or even formal guidance — saying such stablecoins “do not constitute an offer or sale of securities.”

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“Persons engaging in the process of ‘minting’ (or creating) and redeeming backed stablecoins are not required to register those transactions with the Commission under the Securities Act or to qualify for any of the exemptions from registration provided by the Securities Act,” the statement said.

It goes on to say that such stablecoins — in an arena dominated by Tether's USDT and Circle's USDC — “are sold solely for use in commerce, as a means of payment, remittance, and/or store of value, and not as investments.”

However, the stablecoins mentioned in the statement may not include Tether, as one of the footnotes states that eligible reserves “do not include precious metals or other cryptoassets,” both of which are in Tether’s reserves. The statement also states that any tokens must be redeemable for dollars at any time, but Tether’s terms of service imply minimum amounts or delays.