Stablecoin Drama: SEC’s Latest Move 🎭

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Breaking 🚨 news from the SEC! They just dropped some serious guidelines on stablecoins, but don’t worry, they’re still playing it cool with algorithmic tokens. 😎

On April 4, the SEC introduced a new term – “covered stablecoins” 🎉, which are basically stablecoins that have been given the green light to operate without having to report every little thing they do. Phew! 🙌

So what’s a “covered stablecoin”? It’s one that’s backed by actual money 💸 or super safe, liquid assets and can be exchanged for US dollars at a 1:1 ratio. No funny business allowed!

But here’s the twist: algorithmic stablecoins, those sneaky ones that use software to keep their value, didn’t make the cut. Their fate remains uncertain, leaving us all on the edge of our seats. 🤯

Now, industry bigwigs want changes so they can share some of that sweet yield with stablecoin holders. 🤑 But according to the SEC, covered stablecoin issuers can’t touch those reserves for anything other than keeping the lights on. No investing, no speculation, nada! 🙅‍♂️

And guess what? The SEC’s definition aligns perfectly with what Senator Bill Hagerty and Rep. French Hill had in mind. They want stablecoins to support the US dollar’s reign 🇺🇸, backed by good ol’ greenbacks and government securities.

Centralized stablecoin issuers are backing their tokens with US dollar deposits and short-term US Treasury Bills. Tether, the biggest stablecoin issuer, is now a bigger holder of US Treasuries than Canada, Germany, and South Korea. Who needs international allies when you’ve got stablecoins, right? 🤔

At the White House Digital Asset Summit, US Treasury Secretary Scott Bessent hinted that stablecoins will help spread the US dollar’s influence far and wide. Regulating stablecoins is a top priority for the administration, so stay tuned for more updates! 📡

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2025-04-05 00:49