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Under new leadership, the U.S. Securities and Exchange Commission (SEC) is adjusting how it views stablecoins, particularly those tied to the U.S. dollar. In a fresh press release, the agency stated that dollar-pegged stablecoins that don’t offer yields don’t fall under its jurisdiction.
According to the SEC, these types of stablecoins are used to pay for goods, transfer funds, or hold value—not as investments. The key point is that buyers don’t expect profits from holding them. That makes them different from typical securities.
“Covered stablecoins are marketed solely for use in commerce, as a means of making payments, transmitting money, and/or storing value, and not as investments,” the SEC noted.
The agency also pointed out that these stablecoins aren’t sold in a way that encourages speculation. In short, people use them like digital dollars rather than as investment tools.
However, the SEC hasn’t ruled out future oversight for other types of stablecoins. Tokens offering returns, those based on algorithms, or assets pegged to non-dollar currencies might still come under scrutiny later. The agency said it has yet to form a clear stance on those.
The new guidance marks a shift from how the SEC operated under Gary Gensler, who chaired the commission during the Biden Administration. During his term, the SEC took legal action against several crypto companies, including Ripple Labs, Coinbase, Kraken, and Consensys. Notably all the cases against these firms have either been dropped are about to be dropped. Gensler also classified most digital tokens—except Bitcoin—as securities.
Bitcoin ETFs didn’t get approval under his watch until a court forced the SEC to take action. That delay frustrated many in the crypto industry, who saw it as regulatory overreach.
Gensler stepped down in January. Since then, former Commissioner Mark Uyeda has served as acting Chair. The SEC is now preparing for a more permanent change in leadership.
Paul Atkins, a previous SEC commissioner known for backing lighter regulation, could soon take over. The Senate Banking Committee recently advanced his nomination with a close 13–11 vote. Atkins has also had ties to the cryptocurrency sector, a detail that could shape future SEC policy.