The US Securities and Exchange Commission (SEC) is making some moves that suggest a more welcoming stance towards crypto, particularly stablecoins. This could be a big boost for the crypto market.
Stablecoins: Now Considered Cash?
The SEC recently released guidance suggesting that certain stablecoins might be treated as cash equivalents. This applies to stablecoins backed by things like dollars or short-term government bonds (think treasury bills), as allowed under the GENIUS Act. If a stablecoin guarantees redemption for its dollar value, companies might be able to treat it as cash on their books, instead of a digital asset. This could make stablecoins much more attractive to businesses.
This follows the SEC’s earlier confirmation that some stablecoins aren’t securities. They clarified that this applies to stablecoins designed to maintain a 1:1 value with the dollar and are easily redeemable for that value, backed by low-risk, liquid assets.
SEC Chair Paul Atkins even praised stablecoins, saying they can help reduce costs and risks in the market.
Project Crypto and Beyond
All this comes on the heels of “Project Crypto,” the SEC’s initiative to make the US a global crypto leader by providing clearer regulations. Since launching Project Crypto, the SEC has been busy:
- National Crypto Roundtables: The SEC’s Crypto Task Force is holding roundtables across the US to get input from crypto stakeholders.
- Liquid Staking Tokens: The SEC also declared that liquid staking activities and their associated tokens aren’t securities. This opens the door for their potential inclusion in crypto exchange-traded funds (ETFs), possibly starting with Solana ETFs.
In short, the SEC’s recent actions paint a picture of a regulator becoming more comfortable with crypto, potentially paving the way for wider adoption.