Fact Check Team: Stablecoins gain traction as US lawmakers push for regulation

A quiet revolution is unfolding in the cryptocurrency world, and it's not about Bitcoin or Ethereum. The focus is on stablecoins, a type of cryptocurrency pegged to a specific reserve asset, often the U.S. dollar, which allows them to maintain a steadier value. According to the World Economic Forum, stablecoins are essentially digital dollars designed to stay steady, unlike cryptocurrencies that spike or plummet in value like Bitcoin or Dogecoin.

Last year, stablecoins facilitated $15.6 trillion in transactions. The U.S. Securities and Exchange Commission (SEC) has stated that covered stablecoins, as long as they meet certain criteria, are not considered securities. This classification means that companies issuing or redeeming them do not have to undergo the usual securities registration process. The SEC views these coins more as tools for payment or storing value rather than investment products. According to the SEC: