The new management of the U.S. SEC has released new regulations for stablecoin oversight.

The new management of the U.S. Securities and Exchange Commission (SEC) has issued new guidance on certain types of stablecoins, creating a new regulatory term: "regulated stablecoins." These stablecoins must be pegged to the U.S. dollar on a one-to-one basis and backed by low-risk, high-liquidity reserve assets, with their dollar value equaling or exceeding the total value of stablecoins in circulation. The SEC stated that these types of stablecoins are not considered investment contracts and therefore do not fall under the category of securities. This statement provides much-needed clarity for issuers of U.S. dollar-pegged stablecoins and market participants. However, this statement does not apply to algorithmic stablecoins, yield-bearing stablecoins, or any digital assets pegged to currencies other than the U.S. dollar. The SEC has not made a securities determination on these categories, leaving their regulatory status still unclear.