From www.investmentlawwatch.com: On April 4, 2025, the SEC’s Division of Corporation Finance issued a statement declaring that the offer and sale of certain “Covered Stablecoins,” which are crypto assets designed to maintain a one-for-one value with the US Dollar and backed by readily liquid assets, do not constitute securities under federal laws.

Transactions involving Covered Stablecoins will not require SEC registration or exemptions, whereas stablecoins outside this definition may be treated as commodities subject to CFTC jurisdiction.

Commissioner Caroline Crenshaw expressed concerns about the statement, questioning its implications for existing stablecoin holders.