SEC Classifies Certain Stablecoins as Cash Equivalents in Interim Guidance

The U.S. Securities and Exchange Commission has granted select USD-pegged stablecoins provisional status as cash equivalents under new accounting guidance. Only tokens maintaining a 1:1 peg through high-liquidity collateral with on-demand redemption qualify—a deliberate calibration to bridge crypto and traditional finance.

This stopgap measure precedes comprehensive crypto regulations currently in development. The classification aims to reduce institutional uncertainty by aligning compliant stablecoins with conventional cash instruments. Chairman Paul Atkins' SEC appears to be softening its stance incrementally, mirroring legislative efforts like the GENIUS Act to formalize digital asset integration.

The MOVE signals growing regulatory recognition of stablecoins' role as digital cash substitutes. Market observers note the decision could accelerate institutional adoption by providing clearer accounting treatment for balance sheet purposes.