- Daily stablecoin usage has surged, with over 300,000 active addresses and $72 billion in on-chain volume.
- The SEC has formally excluded certain reserve-backed stablecoins from being classified as securities.
- “Covered Stablecoins” must maintain a 1:1 USD backing with liquid, low-risk assets held in reserve.
The crypto world witnessed a major upswing this week, with stablecoin activity climbing to remarkable heights. According to data from blockchain analytics firm IntoTheBlock, daily active addresses for stablecoins surpassed 300,000, a figure not seen since early 2024.
Similarly, on-chain stablecoin transaction volume reached a staggering $72 billion on Thursday, marking the highest level since February. This surge suggests renewed confidence and utility in stablecoins, especially amid volatile market conditions.
Experts attribute the spike to increased usage in cross-border transactions and DeFi protocols, where stablecoins offer a haven from broader crypto market fluctuations.
The data reflects a growing trend: stablecoins are evolving from trading tools into foundational instruments for mainstream financial activity, particularly in remittances, yield strategies, and real-world payments.
Covered Stablecoins Must Maintain Transparent Reserves
In a major regulatory development, the U.S. SEC released a formal statement on Friday, clarifying its position on certain types of stablecoins.
The agency affirmed that reserve-backed, USD-pegged stablecoins meeting specific criteria, now defined as “Covered Stablecoins”, do not qualify as securities under existing federal law.
This statement is expected to shape how these assets are issued, marketed, and used in the U.S. financial system.
Covered Stablecoins must maintain a one-to-one peg with the U.S. dollar, be redeemable at that rate, and be fully backed by low-risk, liquid assets held in a segregated reserve.
According to the SEC’s Division of Corporation Finance, issuers of Covered Stablecoins are not required to register the minting or redemption of these assets under the Securities Act of 1933.
This move provides both legal clarity and operational assurance to issuers and users alike.
Stablecoin Liquidity Ensured Through Segregated Assets
A defining feature of Covered Stablecoins is the transparency and integrity of their reserve structure. Issuers are expected to maintain a reserve of assets equal to or greater than the circulating supply of stablecoins.
These reserve holdings must be kept in a form that provides ready liquidity for redemptions and may not be commingled with operational or risk-taking financial activities. The definition of the SEC also focuses on the fact that Covered Stablecoins are not offered as investment products, a critical consideration in establishing that the coins are non-security instruments.
Rather, they are strictly defined as payment tools, money transmission, and value storehouses. Some issuers in certain cases make “proof of reserves” available in order to give additional accountability to their users and regulators.
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