SEC updates staff guidance on accounting rules for USD stablecoins: Bloomberg

The U.S. Securities and Exchange Commission has updated staff guidance on accounting rules for stablecoins, Bloomberg reported Monday.

Essentially, the fresh guidance suggests that stablecoins pegged to the U.S. dollar could receive cash equivalent classification, contingent on having guaranteed redemption mechanisms and value stability tied to another asset class, according to the Bloomberg report.

While the SEC works to formulate broader crypto rules, the latest interim guidance represents part of Chair Paul Atkins's effort to dismantle restrictive measures. For example, in April, the agency clarified that "covered" USD stablecoins are not deemed securities, while also confirming that entities handling stablecoin issuance and redemption do not need to register these activities with the commission.

Last week, Atkins unveiled Project Crypto, which builds on recommendations from the President's Working Group report and seeks to "modernize the securities rules and regulations to enable America’s financial markets to move on-chain."

Bernstein's analysis team called it an unprecedented crypto framework from U.S. regulators, one that could position America at the forefront of international financial evolution.