TLDR:
- SEC guidance may classify qualifying stablecoins as cash equivalents for financial reporting.
- Stablecoins must hold full reserves, maintain peg, and guarantee redemption to qualify.
- This move could ease compliance risk for banks entering crypto-backed operations.
- The update signals a shift under Chair Paul Atkins toward clearer crypto accounting rules.
The U.S. Securities and Exchange Commission just made a move that could reshape crypto accounting.
Certain USD-pegged stablecoins may now qualify as cash equivalents if they meet strict criteria. This shift comes under the agency’s new Chair, Paul Atkins, who is easing some of the previous barriers for traditional finance.
It marks an early step in creating a clearer path for crypto-related financial rules. Banks and lenders are now watching closely to see how far the door opens.
Stablecoins Get Accounting Clarity
Bloomberg Law reported that the SEC released fresh internal guidance on how to treat specific stablecoins. Under this update, a stablecoin must hold enough reserves, maintain a dollar peg, and offer guaranteed redemption to fit the new category.
These changes give traditional lenders a clearer route into crypto-backed operations. By reducing uncertainty, the agency is signaling that crypto and traditional finance may finally share some common ground.
🏦 NEW: SEC Issues Interim Guidance on Stablecoin Accounting
The U.S. SEC now allows certain USD-pegged stablecoins with guaranteed redemption rights to be classified as cash equivalents.
Part of broader efforts to ease crypto-related policies under Chair Paul Atkins.
Aimed at… pic.twitter.com/b3G4OLAhDY
— CoinRank (@CoinRank_io) August 5, 2025
Under Paul Atkins, the SEC appears to be softening its stance on crypto. Earlier this year, the agency clarified that covered stablecoins are not considered securities. Now, with this latest guidance, it is pushing further by addressing accounting treatment head-on.
This approach comes after years of hesitation and tighter rules that discouraged financial institutions from touching stablecoins. With Atkins in charge, the direction looks different.
Why It Matters for Lenders
For banks and other lenders, this change could reduce compliance risk. If a stablecoin counts as a cash equivalent, it is easier to include in financial statements. That creates room for more direct involvement without heavy regulatory uncertainty.
Crypto investors see this as a step toward bridging traditional finance with digital assets. The guidance is temporary, but it gives institutions a starting point they have been waiting for.
The SEC’s update does not replace the need for a full regulatory framework. Instead, it signals an interim stage while broader rules are in progress. Market watchers expect more changes as the agency continues rolling back older restrictions.
For now, one thing is clear. Stablecoins are no longer sitting in regulatory limbo. And for banks looking at crypto, that could be the green light they needed.
