SEC declares 'covered' stablecoins like USDT and USDC are not securities, no registration needed for minting or redeeming

The U.S. Securities and Exchange Commission said “covered” U.S. dollar stablecoins — basically USDT and USDC — are not securities and persons involved in the process of “minting” and redeeming them are not required to register the transactions with the commision.According to the SEC, covered stablecoins “maintain a stable value relative to the United States Dollar” and are backed by reserves, as is the practice with both Tether and Circle, the world’s two largest issuers of stablecoins.