Stablecoin Regulation Alert!

The US SEC has unveiled new guidelines for "covered stablecoins," defining them as fully backed by physical fiat reserves, thereby excluding algorithmic tokens. These covered stablecoins, exempt from securities regulations, maintain a 1:1 ratio with the US dollar and cannot be used for investment or offer yields. This move is part of a strategy to reinforce the US dollar’s global dominance, also supported by the GENIUS stablecoin bill. Amidst these developments, industry leaders push for regulatory changes to explore yield opportunities for stablecoin holders. Meanwhile, the SEC aims to align digital asset rules with broader US policy.