SEC Greenlights USDC as Cash Equivalent in Major Regulatory Milestone

The U.S. Securities and Exchange Commission has authorized corporate accountants to classify compliant stablecoins such as USDC as cash equivalents. Eligible dollar-pegged tokens must demonstrate 1:1 redemption guarantees, full cash/Treasury bill backing, and price stability—a decision expected to accelerate institutional cryptocurrency adoption.

This ruling expands upon April 2025 guidelines aligned with the GENIUS Act, mandating federal/state licensing and reserve audits for issuers. Industry observers note the framework may advantage regulated stablecoins like USDC—currently priced at $0.9998 with a $64.38 billion market cap—over unregulated alternatives.

Financial analysts predict the regulatory clarity will spur treasury management adoption, particularly among compliant issuers. The SEC's shift from restrictive policies under Chair Atkins signals growing acceptance of blockchain-based financial instruments within traditional regulatory frameworks.