The U.S. SEC has issued new guidelines classifying stablecoins as cash equivalents under accounting standards, according to a Bloomberg report. This could boost mainstream financial institutions’ interaction with stablecoins, especially for settlements and cross-border transactions. However, experts warn that the move could stifle innovation if the SEC’s definition of guaranteed redemption is too narrow. The news follows the recent announcement of Project Crypto, an initiative aimed at onboarding traditional finance infrastructure onto the blockchain. The total market cap of all stablecoins currently stands over $268 billion, a 63% increase since August 2024.
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