Or hinder the legislative process, SEC Democratic commissioners oppose the classification of stablecoins as non-securities.

[Or hinder the legislative process, SEC Democratic Commissioner opposes stablecoin non-securities classification] A TD Cowen report points out that SEC Commissioner Caroline Crenshaw opposes classifying stablecoins as "non-securities," which could become a new obstacle to stablecoin legislation. Crenshaw criticized the SEC for underestimating the risks of stablecoins, stating that the statement has serious flaws on both legal and factual levels. The SEC stated last week that stablecoins backed by reserves and easily redeemable do not constitute securities. Crenshaw voiced opposition, emphasizing that intermediaries may not redeem dollars on a 1:1 basis, posing risks to investors. Although both houses of Congress have advanced different versions of stablecoin regulatory bills, the divergence between Crenshaw and the SEC may affect legislative consensus, especially in the Senate, where Democratic support is crucial. Additionally, House Financial Services Committee Democratic leader Maxine Waters expressed concerns about former President Trump's involvement in crypto policy, warning that legislation could pave the way for entrepreneurs like Musk to issue stablecoins.