SEC Approves First Stablecoin With Yield
The U.S. Securities and Exchange Commission has granted approval for Figure Markets to issue a yield-bearing stablecoin, allowing users to earn interest on their holdings.
This decision suggests the regulator’s willingness to adapt to the expanding stablecoin sector.
Regulatory documents published on the SEC’s website on February 18 reveal that Figure Markets, an exchange operator, received authorization to launch YLDS, a stablecoin pegged to the U.S. dollar.
YLDS currently offers a 3.85% yield to holders and is classified as a security under the SEC's oversight.
Figure Markets CEO Mike Cagney disclosed to Fortune that the company had submitted its application to the SEC over a year ago.
Although Figure Markets is the first entity in the U.S. to gain approval for a yield-bearing stablecoin, it is not the only one exploring this path.
As reported by Cointelegraph, Tether co-founder Reeve Collins intends to introduce a decentralized stablecoin with interest-earning capabilities in the latter half of the year.
Collins’ upcoming Pi Protocol will enable users to generate a stablecoin in return for a yield-generating token.
The stablecoin market continues to expand while U.S. legislators focus on crafting regulatory frameworks that support the industry's growth.
As highlighted by S&P Global, U.S. regulators are navigating key issues surrounding stablecoins, such as reserve management, transparency, integration with traditional financial systems, and jurisdictional challenges.
In contrast, jurisdictions like the European Union, Hong Kong, and Singapore have made notable progress in establishing comprehensive regulations for stablecoins, whereas the U.S. remains behind.
On February 5, Republican lawmakers French Hill and Bryan Steil introduced a draft of the STABLE Act, aimed at providing clearer regulatory guidance for stablecoin issuers.
Former Commodity Futures Trading Commission Chair Timothy Massad acknowledged that the draft contains some positive elements but falls short in key areas.
Massad expressed his concerns during a February 11 subcommittee hearing in Washington, D.C., stating that the proposal lacks sufficient impact on major issuers such as Tether.
He also criticized the draft, describing it as "substantially weaker" than the version negotiated by the former committee chair and the ranking member last fall.
Sources:
https://cointelegraph.com/news/sec-approves-first-yield-bearing-stablecoin
https://www.sec.gov/Archives/edgar/data/1974395/999999999525000488/xslEFFECTX01/primary_doc.xml
https://fortune.com/crypto/2025/02/20/figure-markets-sec-approved-stablecoin-ylds-mike-cagney/
https://www.sec.gov/Archives/edgar/data/1974395/000113743923001216/fccs1102023.htm
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