SEC Allows Certain Stablecoins as Cash Equivalents Under New Interim Guidance

The U.S. Securities and Exchange Commission (SEC) has issued interim guidance allowing certain stablecoins to be treated as cash equivalents under specific conditions [1][2]. This marks a pivotal shift in the regulatory approach to digital assets, particularly for stablecoins that are fully backed by U.S. dollar reserves and offer guaranteed redemption on a 1:1 basis. The guidance applies only to stablecoins that meet strict criteria, including full cash or Treasury-backed reserves, a consistent 1:1 peg to the U.S. dollar, and a formal redemption mechanism [2].

The move is seen as part of a broader initiative led by SEC Chair Paul Atkins to modernize cryptocurrency regulation, aligning with the recently enacted Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). The law, signed by President Trump, sets prudential requirements for stablecoins and recognizes them as a distinct financial instrument separate from securities or commodities [1]. This regulatory clarity benefits firms like Circle (USDC) and Tether (USDT), which now have a clearer path to compliance.

The reclassification of qualifying stablecoins as cash equivalents has practical implications for institutional investors and companies with significant crypto holdings. It may improve financial reporting transparency and simplify balance sheet management, particularly for firms with substantial exposure to stablecoins [2]. However, the guidance does not extend to algorithmic stablecoins, yield-bearing tokens, or any assets not directly tied to the U.S. dollar, emphasizing the SEC's focus on transparency and stability.

While the guidance is not a permanent rule change, it is a meaningful step toward integrating digital assets into traditional financial reporting [1]. The SEC has acknowledged the interim nature of the guidance and indicated that further rulemaking is likely under its ongoing “Project Crypto” initiative, aimed at refining the classification of digital assets and enhancing disclosure standards [2]. Analysts suggest the decision may encourage greater adoption of compliant stablecoins within traditional financial systems but caution that risks such as redemption uncertainty and regulatory gaps remain unresolved [2].

The guidance also aligns with global regulatory trends, including the European Union’s Markets in Crypto-Assets Regulation (MiCA) and the U.K.’s Financial Services and Markets Act 2023, which seek to establish comprehensive frameworks for digital assets [1]. The SEC’s approach reflects a growing emphasis on asset-backed stability and investor protection, which are critical for maintaining market integrity and fostering long-term confidence in digital financial instruments.

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

[3] title3: US SEC Issues Interim Accounting Guidance for Stablecoins

url3: https://www.bitget.com/news/detail/12560604895448