Securities and Exchange Commission Embracing Cryptocurrencies? The Silent Stablecoin Change That's Being Overlooked by the Market
The United States Securities and Exchange Commission (SEC) has taken a significant step forward in regulating the cryptocurrency sector, with the SEC's Crypto Task Force spearheading new crypto roundtables across ten cities in the US from August 4 to December 5. This move is part of the SEC's ongoing efforts since the launch of Project Crypto a week ago, aimed at providing regulatory clarity for the industry.
Commissioner Hester Peirre, who leads the Crypto Task Force, intends to use these roundtables as an opportunity to hear from crypto stakeholders who couldn't make it for the earlier roundtables in Washington, D.C. The roundtables are expected to cover various topics, including the SEC's recent staff guidance on stablecoins.
The SEC has released new guidance for stablecoins, which are digital assets designed to maintain a stable value relative to the US dollar on a one-for-one basis. According to a Bloomberg report, the SEC considers certain dollar-backed stablecoins as cash equivalents for institutional accounting purposes. This classification applies to stablecoins backed 1:1 with low-risk liquid assets like cash or U.S. Treasury bills and excludes algorithmic or yield-bearing stablecoins due to volatility risks.
The SEC's classification as cash equivalents simplifies the balance sheet treatment of these stablecoins, potentially facilitating mainstream adoption by public companies. However, public companies that are non-financial entities face rigorous limits on issuing stablecoins, including the need for unanimous committee approval, thus reducing their ability to directly issue stablecoins.
Concurrently, the recently enacted GENIUS Act (July 2025) establishes the first federal regulatory framework specifically for payment stablecoins. The Act prohibits issuance in the US unless the issuer is a permitted entity under a strict state or federal regulatory regime. The GENIUS Act balances federal and state oversight depending on the issuer’s size and mandates transition to federal regulation for issuers above a certain threshold.
The regulatory clarity and oversight framework may boost institutional trust and adoption but also imposes compliance burdens that public companies must navigate carefully. The SEC's Division of Corporation Finance has announced that liquid staking activities and tokens are not considered securities, which could pave the way for the approval of the inclusion of liquid staking tokens in crypto ETFs, starting with Solana ETFs.
The US SEC Chair Paul Atkins praised stablecoins following the passage of the GENIUS Act, describing them as important for the market as they can help lower costs and mitigate market risk. The regulatory landscape has moved toward stricter issuer oversight via the GENIUS Act and recognition by the SEC of fully backed stablecoins as cash equivalents, which is expected to increase stablecoin adoption in corporate finance while ensuring systemic and investor protections, with particular constraints on issuance by public companies.
In light of the SEC's recent guidance on stablecoins, Commissioner Hester Peirre may discuss this topic during the roundtable discussions on investing opportunities in the cryptocurrency sector. With the SEC reclassifying certain stablecoins as cash equivalents, the technology behind these digital assets could play a significant role in shaping the future of finance, especially for public companies in the US.
