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What the SEC Really Thinks About Stablecoins Will Leave You Gasping!

BBG News

On a delightfully dreary Friday, the grand folks at the SEC’s Division of Corporation Finance whipped up a rather splashy “Statement on Stablecoins!” Fancy that—an entire statement for those funky, money-like things!

Regulatory Shenanigans: SEC Unveils the Mysteries of Stablecoins!

Well, well, well! The U.S. Securities and Exchange Commission (SEC)—those charming guardians of financial sanity—decided to grace us with their latest muse, the “Statement on Stablecoins.” Turns out, if you have one of those reserved-backed “low-risk” digital assets that plays nice and pretends to stay at the same level as the mighty U.S. dollar (USD), you’ve hit the jackpot! The Commission proclaims these “covered stablecoins” are not in the securities club. 🎉

And get this: they’ve drawn a line in the sand between those darned creatures and their far more adventurous algorithmic cousins. Apparently, if your stablecoin starts chasing unicorns and fairness, it’s not covered. But if it just wants to hang out with the dollar? All good! 📈

But here’s a little secret: there’s fine print! A disclaimer meant to tickle your fancy clarifies that this statement is just the opinion of the Division of Corporate Finance. It’s like saying, “Not my circus, not my monkeys; I’m just the clown!” 🤡

Now, stablecoins are strutting their stuff, bagging some hefty wins! Tether, the big cheese in the stablecoin world, reported a jaw-dropping €13 billion in profit for 2024, causing sweat to trickle down the backs of many a financial guru. Meanwhile, both the House and Senate are itching to pass some exciting new stablecoin bills, and if you ask me, they’re like two kids in a candy store, all bipartisan-like! 🍭

“Our learned Division thinks the offer and sale of these lovely Covered Stablecoins, in the manner described, do not count as selling securities,” the statement boldly declares. Can I get a round of applause? 👏

“So, if you’re minting—or creating—a Covered Stablecoin, you won’t have to knock on the SEC’s door with your paperwork. Happy minting!”

Tether’s USDT and Circle’s USDC hold a whopping 70% of the $240 billion giant that is the stablecoin market, according to the ever-updated chronicles of Coinmarketcap. They fit snugly into the SEC’s definition, like a found penny in your pocket. 🤔 Let’s see how the SEC feels about those cheeky non-covered stablecoins, like Ethena’s yield-bearing USDe, which stands tall right after USDT and USDC in the market capitalization race. ⏳

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2025-04-07 20:57

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