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The U.S. Securities and Exchange Commission has released new commentary on stablecoins, with the agency’s Division of Corporation Finance noting that this is part of the effort to provide further regulatory clarity.

SEC said in a news release that the guidance aligns with its objective of providing clarity regarding federal securities laws as related to crypto assets. In this case, the agency has zeroed in on a type of stablecoins it now calls “Covered Stablecoins.”

According to the regulator “Covered Stablecoins” means those stablecoins that maintain a stable value relative to the U.S. dollar, on a 1:1 basis and are redeemable for USD on a 1:1 basis.