<ul><li>The U.S. Securities and Exchange Commission (SEC) has eased regulations on fiat-backed stablecoins like USDC and PYUSD, no longer considering them securities.</li><li>Stablecoins must be fully reserved and pegged 1:1 with the U.S. dollar to qualify as 'Covered Stablecoins' and be exempt from SEC oversight.</li><li>Algorithmic or yield-bearing stablecoins, as well as those tied to non-dollar assets, are not included in the new category and may face scrutiny or fall under securities laws.</li><li>Coinbase CEO Brian Armstrong calls for changes to allow users to earn interest on stablecoin holdings without risking securities classification.</li></ul>

SEC Eases Stablecoin Regulations as USDC and PYUSD Gain Legal Clarity

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