Crypto-Friendly SEC Offers Stopgap Stablecoin Accounting Clarity

The SEC is building onto initial cryptocurrency accounting rules with new staff guidance that certain stablecoins could be treated as cash.

The stop-gap guidance comes as the SEC aims to craft regulations for crypto securities. Under Chair Paul Atkins, the commission has begun to unwind more restrictive policies, including accounting guidance that was seen as a barrier to traditional lenders from entering the crypto market.

Under the latest guidance, holders of certain US dollar stablecoins, which have their value pegged to another asset class, could classify their assets as a cash equivalent if they have a guaranteed redemption right and …