SEC lays out guidelines for stablecoins, excludes algorithmic tokens

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The story "SEC lays out guidelines for stablecoins, excludes algorithmic tokens" was covered 11 hours ago by Coin Telegraph, a news publisher based in United States.

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Coin Telegraph 11h ago

SEC lays out guidelines for stablecoins, excludes algorithmic tokens - Coin Telegraph

Quick Summary:

Related: Stablecoin supply surges $30B in Q1 as investors hedge against volatilitySEC's definition of "covered stablecoin" consistent with broader US policy objectivesThe SEC's criteria for covered stablecoins are consistent with regulations stipulated in the GENIUS stablecoin bill, introduced by Senator Bill Hagerty, and the Stable Act of 2025, introduced by Rep.French Hill.

According to the new guidelines, covered stablecoin issuers must never co-mingle asset reserves with operational capital or offer tokenholders interest, profit, or yield opportunities.

The definition precludes algorithmic stablecoins that maintain their US dollar peg using software or an automated trading strategy, leaving the regulatory status of algorithmic stablecoins, synthetic dollars, and yield-bearing fiat tokens uncertain.