In a rare and clear decision, the American Securities and Exchange commission (SEC) has introduced new guidelines that could have a significant impact on the Stablescoin market. The agency said that certain stablescoins – now called “covered stables” – may not be treated as titles, as long as they follow strict conditions.
The cryptographic industry has already started to respond. TETHER, one of the biggest stablecoin issuers, would plan to modify its strategy to adapt to the new FRIA.
“The covered stablecoins are not marketed as investments; they are rather marketed as a stable, fast, reliable and accessible means of transferring value, or storing value and not for potential profit or as investments,” said dry.
What is a “covered stablecoin”?
The dry explained that covered stable are not offered as investment products. Instead, they are presented as a stable, fast and accessible way to send or store money – not something to make a profit.
To be called a covered stablecoin, the token must meet several key requirements:
- Be fully supported 1: 1 by the US dollar
- Be supported by low -risk and very liquid assets
- Be exchangeable at any value at any time
These stablecoins should not offer interest, promise profits, give voting rights or represent a form of property. They are strictly intended to be used in payments, transfers or value storage – not as investments.
Since they are sold in “digital dollars” and not investment opportunities, the dry affirms that these stabbed do not count as titles under American law. This type of clarity is unusual for the dry, which often adopts a more cautious approach or focused on crypto.
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Mixed reactions of experts
David Sacks, cryptography advisor to the White House, praised the update. He said that it offers essential clarity and reduces regulatory obstacles for sustained staboos of a dollar that are fully supported by safe assets. He also noted that these types of token would no longer need to register under the Securities Act.
However, SEC CARLINE CRENSHAW CUSTRY in disagreement. She warned that the advice is simplifying too much how stablecoins actually work and neglect key legal problems. Crenshaw argued that the risks involved are minimal, and the update could create confusion on the operation of these tokens
Tether faces new challenges
The new rules can benefit Stablecoins as USDC, but they raise concerns for the USDT in Tether. Indeed, the dry does not allow stablecoins to be supported by assets such as cryptocurrency or gold, two of which are included in the reserves of the USDT.
According to Forbes Journalist Nina Bambysheva, Tether now explores the idea of launching a new stablecoin that would fully follow the American rules. This new part would only be supported by cash and American treasures, marking a major change for the company.
The Crypto Novacula Occami analyst also noted that the use by Tether of Bitcoin and Gold in his reserves could make the USDT ineligible for the label “covered with Stablecoin”. This could expose it to stricter regulations under the American securities law.
Tether’s plan for stablecoin compliant with the United States
Despite the potential regulatory pressure, Tether does not seem too worried about a possible USDT American ban. According to CTO Paolo Ardoino, the company is already thinking in advance and is preparing to launch a distinct American compliance stable.
Ardoino has said that the USDT will probably remain focused on emerging markets, while the new Stablecoin would be designed specifically for the American market and built to comply with American regulations.
Even if the wider market in the cryptography market has difficulty in a difficult first quarter, stablecoins see strong growth. Daily use continues to increase, and the Stablescoin market has added more than $ 30 billion in the first quarter – showing that demand remains high despite a broader uncertainty of the market.
It is not every day that the SEC clearly speaks about the crypto – so when it is the case, the industry listens!