The Securities and Exchange Commission does not have business with any particular stubcoin or its issuer. Regulatory staff declared in their latest statement outlining corners of the crypto sector with no legal interests.
As the agency took over to the leadership appointed by President Donald Trump, establishing the Cryptody Task Force to ease pressure on the digital asset sector, its staff have so far issued a series of statements to clarify crypto areas outside their jurisdiction, including meme coins and proof of work crypto mining. Certain stubcoins have been added to that list. The SEC Corporation Finance division has not made any statement on Friday, or even formal guidance, to declare such a ridiculous statement “without the offer and sale of securities.”
“The redemption of those involved (or created) in the process of “mint” and the subject stubcoins does not require these transactions to be registered with the Commission under the Securities Act.
Such stub coins – the arena controlled by USDT of Tether and USDC of Circle arenas “sold only for commercial use, not as an investment but as a means of payment, remittance and/or storing value.”
However, the stubcoins covered in this statement may not include tethered ones. One footnote says that acceptable reserves “do not include precious metals or other crypto assets,” so both are included in the spare tether. And while the statement states that tokens must be redeemed in dollars at any time, Tether’s terms of service suggest that there may be a minimum or delay.
Circle President Heath Tarbert posted social media comments to his competitors, including jabs.
“The SEC only drew a clear line. Stubcoins supported a high-quality liquid asset, one-to-one. “This certainty doesn’t extend to other digital assets just because they call themselves ‘stablecoins’. ”
Congress is moving forward to establishing a new US standard set for issuing such tokens. This week, the House Financial Services Committee moved forward with the Stubcoin bill towards a House-wide vote. The Senate is building towards consideration of similar bills that have also been approved by the committee. In both cases, by a broad, bipartisan vote.
They are the most subdued crypto assets, but Stabrecoin has been a colorful political topic in recent weeks as Trump-backed world freedom finance pitches its own stubcoin and some Congressional Democrats are worried that Elon Musk will take advantage of his position as a tech giant.
Hester Peirce, SEC commissioner who leads the agency’s task force, said he feels that the early uncoupled movement to reverse cryptographic resistance in the SEC is important and should be done quickly, even if it is not yet an official policy. She said that inappropriate tokens (NFTS) may also be considered for such statements.
Read more: sec ‘earnest’ about finding viable cryptographic policies, committee members say in Roundtable
The SEC is set to be second in next week’s series of crypto summits. This is set to focus on trading.
The agency could soon take over to select Trump’s permanent chairman if Paul Atkins is confirmed by the Senate. The Senate Banking Committee approved the nomination in a partisan vote this week.
Even before his arrival, interim chairman Mark Ueda made a dramatic move to overhaul the regulator’s crypto position. That includes abandoning most of the notable enforcement cases that agents have pursued against their digital asset businesses, although some remain.
Update (April 4, 2025, 20:52 UTC): Information about Tether tokens may be excluded.
Update (April 4, 2025, 21:22 UTC): Add a comment from the circle president.
