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• The US SEC declared that dollar-backed stablecoins are not securities as per federal law. 
• Stablecoin issuers do not need to register stablecoin mint and redeem transactions under the Securities Act. 

The US government is speeding up its process of regulating the crypto space. It’s only been a couple of days since the STABLE Act was passed to regulate stablecoins. Today, the SEC came up with another announcement, which is also a major reform to stablecoin regulation. 

The latest Bloomberg article reports that the US SEC ruled that dollar-backed stablecoin is not a security. They don’t need registration before issuance like traditional securities. This brings clarity to the confusion of which cryptocurrencies are securities and which are not. 

David Sacks took the same matter to his official X account and confirmed the news. Fully-reserved, liquid, and dollar-backed stablecoins are not considered securities from now on. This also makes it clear that stablecoin minting and redeeming do not need to be registered with the SEC. 

Stablecoin Regulation Advances Under Trump’s Presidency

Donald Trump has reiterated his intention to regulate dollar-backed stablecoins multiple times. Keeping this in mind, two government leaders, French Hill and Bryan Steil, introduced the STABLE Act bill in March. This bill was passed in the House Financial Services Committee, gaining maximum votes in favor. 

Even though Trump is the major force behind crypto and stablecoin regulation, his involvement with crypto is making it complicated. During the vote session of the STABLE Act bill, several lawmakers raised concerns about Trump’s interest in launching crypto projects. 

The stablecoin regulation is moving forward at a faster pace than any other subsection of the crypto industry. This is because Trump’s government opined that a stablecoin has the potential to increase dollar dominance. White House AI & Crypto Czar David Sacks also expressed his belief in stablecoin’s capability to foster the US Treasury by addressing its debt issues. 

Even after decades of operation, the crypto industry doesn’t have clear rules and regulations in place. Trump’s presidency brought a new paradigm to the crypto industry with its revolutionary initiatives to make this space legal, while also underlining potential issues. 

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