SEC Updates Rules to Redefine Stablecoins as Cash-like Assets

Key Points

1. The SEC released a new staff guide on August 4, 2025, updating accounting rules for U.S. dollar-pegged stablecoins.

2. Stablecoins meeting specific conditions can now be classified as cash-like assets, aligning with SEC Chair Paul Atkins' initiative to reduce restrictive barriers.

3. The update is part of Project Crypto, an SEC initiative to establish modern rules for cryptocurrency regulation.

4. The new guidance aims to facilitate the stablecoin market while ensuring compliance within a regulated environment.

5. The SEC's approach reflects a broader effort to create a clear, gradual, and technology-friendly regulatory framework for cryptocurrencies.