Statement on Stablecoins

The SEC's Division of Corporation Finance states its view that certain U.S. dollar-pegged stablecoins, called "Covered Stablecoins," do not involve the offer and sale of securities under the Securities Act of 1933 or the Securities Exchange Act of 1934. The statement defines these as coins designed to hold a one-for-one value with USD, redeemable for USD one-for-one, and backed by low-risk, readily liquid reserve assets worth at least the value of coins in circulation. It says Covered Stablecoins are marketed for payments, money transmission and storage of value rather than as investments, and that their reserve assets are segregated and cannot be used for trading or speculation.