Stablecoin Oversight
The Act has also cleared the air around stablecoins, expressly stating that these are not securities, and the SEC, therefore, has no say on their regulation. Stablecoins like $USDC, $USDT, or PayPal USD will be regulated by ‘whichever regulator already oversees the firm involved.’
This means that if a stablecoin has been issued by a bank, bank regulators such as the FED or OCC will regulate it. Similarly, USDC will be regulated by the agency that oversees Circle, the issuer of $USDC.