For years, the SEC was unwilling to answer even simple questions like "are stablecoins securities?"

It's great to see the SEC give such a clear explanation as to why the answer is "no" under both the Howey and Reves tests.

This SEC is cleaning up the mess 🌟

The SEC has determined that fully-reserved, liquid, dollar-backed stablecoins are not securities. Therefore blockchain transactions to mint or redeem them do not need to be registered under the Securities Act. Helpful clarity from @SECGov. https://t.co/oUsq0snLaF

David Sacks

For years, the SEC was unwilling to answer even simple questions like "are stablecoins securities?"

It's great to see the SEC give such a clear explanation as to why the answer is "no" under both the Howey and Reves tests.

This SEC is cleaning up the mess 🌟
https://x.com/davidsacks47/status/1908263063650001144

what happens to projects like Ethena / USDe in your view based on this?

Likely nothing in the short term. Footnote 4 says the guidance doesn't apply to yield-bearing stablecoins. I don't read that as SEC saying "yield-bearing stablecoins are securities," just punting for now. But USDe is definitely at a disadvantage, especially with stablecoin legislation also excluding yield from clarity.