The total stablecoin market cap has topped $228 billion and currently accounts for 1.09% of the US M2 money supply, according to RWA.XYZ.
The United States Securities and Exchange Commission (SEC) released a statement on April 4 establishing guidelines for stablecoins.
In an April 4 statement, the agency minted a new term, “covered stablecoins,” classifying them as non-securities and exempting such tokens’ transactions from reporting requirements.
According to the SEC’s definition, a “covered stablecoin” is fully backed by physical fiat reserves or short-term, low-risk, highly liquid instruments and is fully redeemable at a 1:1 ratio with US dollars.
The definition precludes algorithmic stablecoins that maintain their US dollar peg using software or an automated trading strategy, leaving the regulatory status of algorithmic stablecoins, synthetic dollars, and yield-bearing fiat tokens uncertain.
Current stablecoin market overview. Source: RWA.XYZ
