SEC Reclassifies Dollar-Pegged Stablecoins as Cash-Like Assets

On August 4, 2025, the U.S. Securities and Exchange Commission (SEC) introduced updated guidance reclassifying certain U.S. dollar-pegged stablecoins as “cash-like assets” under specific conditions. The new guidelines apply to stablecoins that ensure on-demand redemption in U.S. dollars and are fully backed by assets such as cash or U.S. Treasury securities. The reclassification aims to promote financial transparency and reduce market entry barriers while aligning with broader regulatory modernization efforts [2].

The SEC’s guidance clarifies how these stablecoins should be reported in financial statements. Issuers with large reserve portfolios can now classify their stablecoins as securities available-for-sale, thereby minimizing liquidity risk and simplifying accounting practices. This interim framework is part of the SEC’s “Project Crypto” initiative, which seeks to integrate blockchain technology into financial infrastructure and establish clearer boundaries for stablecoin usage without compromising regulatory oversight [2].

According to the guidance, the reclassification does not extend to algorithmic stablecoins, yield-bearing tokens, or other assets not directly linked to the U.S. dollar. This distinction underscores the SEC’s focus on stability and transparency within the digital asset market. While the guidance is not a permanent rule change, it reflects the SEC’s intent to refine future regulations through public consultation and ongoing policy development [1].

Analysts highlight that the move could encourage broader adoption of compliant stablecoins within traditional financial systems. The guidance is expected to benefit institutional investors and firms with significant stablecoin holdings by improving financial reporting standards and balance sheet management [2]. Bernstein’s research team noted that the regulatory shift strengthens the U.S. position in the digital financial landscape by adopting a systematic and technology-adaptive approach, potentially accelerating fintech innovation [2].

The SEC’s approach aligns with global regulatory efforts, such as the European Union’s Markets in Crypto-Assets Regulation (MiCA) and the U.K.’s Financial Services and Markets Act 2023. These developments signal a growing consensus on the importance of asset-backed stability and investor protection, which are critical for maintaining market integrity and building long-term trust in digital financial tools [1].

Source:

[1] title1: SEC to allow some stablecoins to be treated as cash

url1: https://crypto.news/sec-treat-stablecoins-cash-equivalents-2025/

[2] title2: U.S. SEC Issues Guidelines Allowing Certain Dollar...

url2: https://www.binance.com/square/post/27886235803305