PANews reported on April 5 that the U.S. Securities and Exchange Commission's Division of Corporation Finance issued a statement on stablecoins, stating that under current regulations, certain types of crypto assets (i.e., "Covered Stablecoins") are not securities, and persons involved in the process of "minting" and exchanging stablecoins do not need to register these transactions with the Commission under the Securities Act, nor do they need to comply with one of the registration exemptions under the Securities Act. Covered Stablecoins are designed to maintain a stable value relative to the U.S. dollar or "USD" on a one-to-one basis, can be exchanged for US dollars on a one-to-one basis (i.e., one stablecoin for one dollar), and are backed by assets held in reserves that are considered low-risk and easy to liquid, and whose dollar value meets or exceeds the redemption value of stablecoins in circulation. This type of stablecoin is mainly used for payment, transfer and storage of value, not as an investment tool, and its sales and transactions do not involve the provisions of securities laws.