SEC issues guidance on stablecoins, saying "regulated stablecoins" are not securities

The Securities Exchange Commission (SEC) company finance division has just issued guidance on stablecoins.
The agency coined a new term - "Covered Stablecoins" - to refer to stablecoins that "maintain a 1:1 stable value relative to the U.S. dollar, can be converted to U.S. dollars at a 1:1 ratio (i.e., one stablecoin to one U.S. dollar), and are backed by low-risk, highly liquid assets held in reserves whose dollar value equals or exceeds the redemption value of stablecoins in circulation."
"Regulated stablecoins" are not offered or sold as investment contracts, and those involved in the "minting" and exchange process are not required to register transactions with the commission, so they do not fall under the SEC's jurisdiction, the department said. USDT and USDC fall under the category of "regulated stablecoins", according to analysts at The Block.
The statement does not cover algorithmic stablecoins, yield stablecoins, or stablecoins that track the value of assets other than the U.S. dollar.