According to Golden Finance, the U.S. Securities and Exchange Commission (SEC) corporate finance department has just issued guidance on stablecoins. The agency has coined a new term, “regulated Stablecoins,” referring to those “stablecoins that maintain a stable value of 1:1 relative to the dollar, which can be converted into US dollars in a 1:1 ratio (i.e., one stablecoin is exchanged for one dollar) and is backed by assets held in the reserve with low risk, high liquidity and the value of the dollar equals or exceeds the redemption value of the stablecoin in circulation.” The department said that the “regulated stablecoins” are not provided or sold as investment contracts, and that those involved in the “minting” and exchange process do not need to register transactions with the Commission and therefore do not fall under the jurisdiction of the SEC. USDT and USDC fall into the category of "regulated stablecoins," analysts from The Block said. The statement does not cover algorithmic stablecoins, earnings stablecoins or stablecoins that track the value of assets outside the US dollar.