SEC revised criteria for cryptocurrencies list for ICOs, adding USDC and USDT. These amendments will be effective from 16 March 2025, with Bitcoin, Ethereum, Ripple, Stellar, and others already listed.
The Securities and Exchange Commission (SEC) has updated the criteria for cryptocurrencies eligible for various uses in the digital asset ecosystem. The revised list includes two additional cryptocurrencies, USD Coin (USDC) and Tether (USDT). These updates apply to investments in digital tokens through ICO processes, transactions facilitated by ICO portals for investors or issuers, and digital asset exchanges using these cryptocurrencies as base trading pairs. The amended regulations will come into effect on March 16, 2025.
The SEC has outlined a list of approved cryptocurrencies eligible for investment in digital tokens through ICO processes and as base trading pairs on digital asset exchanges. Currently, the approved cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Stellar (XLM), and cryptocurrencies utilized for testing settlements within the Bank of Thailand’s Programmable Payment Sandbox.
Stablecoins: USDC and USDT Overview
Stablecoins are cryptocurrencies designed to maintain a stable value, typically by being pegged to a reserve of assets like traditional fiat currencies. USDC (USD Coin) and USDT (Tether) are two popular stablecoins, each pegged to the US dollar on a one-to-one basis. USDC was launched by Circle, initially on the Ethereum blockchain, and has since expanded to other blockchains. It is not produced by mining but is powered by smart contracts. USDT, on the other hand, was first launched on the Omni blockchain by Tether Ltd. Both stablecoins are used within the crypto ecosystem for various purposes, including trading on exchanges, remittances, and in decentralized finance (DeFi) applications.
USDC vs. USDT: Key Features and Differences
USDC and USDT share similarities such as stable value, fast transaction speed, cheap transaction cost, accessibility, liquidity, and Ethereum compatibility. However, they differ in reserve management, auditing, global adoption, divisibility, and transparency. USDC’s asset reserves are held in the management and custody of top financial institutions, including BNY Mellon and BlackRock, and are audited by Deloitte.
In contrast, USDT’s asset reserve is managed by issuer company Tether Ltd., with monthly asset reserve reports provided but no regular auditing information available publicly. USDC has a market cap of about $28 billion, while USDT’s market cap is significantly larger at $83 billion as of June 06, 2023. USDC can be divided into units like fiat currency, while USDT is not divisible. USDC maintains public trust and transparency through regular audits and reserve reports, while USDT has faced scrutiny concerning its transparent working model.
Source : SEC adds USDC and USDT to the cryptocurrencies list
