CTF Written Submission

StableCoins

April 28, 2025
  • StableCoins must develop and utilize mechanisms to maintain a stable value relative to a reference asset, which may involve holding a fixed amount of the reference asset or maintaining an asset base that parallels the reference asset.
  • If a StableCoin platform's business involves investing or trading in securities, it may be required to register as an investment company under the Investment Company Act of 1940, unless it qualifies for an exemption.
  • The SEC has a regime for investment companies aimed at maintaining a stable value, such as money market funds, which includes diversification, transparency, and valuation policies.

Last Reviewed or Updated: April 28, 2025