The SEC has issued provisional guidance on the accounting of stablecoins

According to Bloomberg, the Securities Exchange Commission (SEC) is building on its preliminary cryptocurrency accounting rules by issuing a new staff guidance that says certain stablecoins can be treated as cash. The interim guidance comes as the SEC is working on regulatory rules for crypto securities. Under the leadership of SEC Chairperson Paul Atkins, the Commission has begun rolling back some of the more stringent policies, including accounting guidelines that were previously seen as hindering traditional lenders from entering the crypto market. According to the latest guidance, holding certain dollar-pegged stablecoins can be classified as cash equivalents if they have guaranteed redemption rights and their value is anchored to another class of asset.