In April 2025, the U.S. Securities and Exchange Commission (SEC) made a landmark decision that could reshape the $200 billion stablecoin market—and the future of finance itself. The SEC declared that fully-reserved, dollar-backed stablecoins are not securities, removing a major regulatory hurdle for their use in blockchain transactions. Just weeks earlier, the International Monetary Fund (IMF) released its Balance of Payments Manual (BPM7), a framework that integrates stablecoins and digital assets into global economic statistics, signaling their growing legitimacy. Together, these developments mark a pivotal moment for smart contract blockchains like Solana and Sui, which rely on stablecoins to power decentralized finance (DeFi), payments, and more. Far from incremental steps, these moves reflect a broader paradigm shift: governments worldwide are increasingly adopting blockchains as financial rails, with stablecoins and smart contracts at the core. In this article, we’ll explore the SEC’s ruling and its implications, dive into the IMF’s BPM7 framework, and analyze how these changes are fueling the rise of Solana and Sui. We’ll also examine the global shift in government attitudes and what it means for the future of blockchain in finance.
The SEC’s Stablecoin Ruling – A Game Changer for Crypto
On April 4, 2025, the U.S. Securities and Exchange Commission (SEC) issued a groundbreaking statement through its Division of Corporation Finance, declaring that fully-reserved, liquid, dollar-backed stablecoins—such as USDC and BUSD—are not securities. This means blockchain transactions to mint or redeem these stablecoins do not need to be registered under the Securities Act, a regulatory requirement that has long loomed over the crypto industry. The announcement, shared by David Sacks on X, sparked widespread celebration in the crypto community, with users like Karan Ahluwalia calling it a “Win for crypto.” The ruling specifically applies to stablecoins pegged 1:1 to the U.S. dollar, fully backed by low-risk, liquid reserves, and designed for payments or value storage rather than speculative investment.
This decision is a game changer for the crypto ecosystem, particularly for stablecoins, which have grown into a $200 billion market by early 2025. By removing the specter of securities classification, the SEC has eliminated a major legal uncertainty that previously deterred businesses and developers from fully embracing stablecoins. Stablecoins are a cornerstone of decentralized finance (DeFi), cross-border payments, and blockchain-based settlements, offering a stable alternative to volatile cryptocurrencies like Bitcoin. The ruling aligns with prior legal precedents, such as the June 2024 Binance case, where a federal court ruled that BUSD did not meet the Howey Test for securities because holders had no expectation of profit—a key factor in the SEC’s reasoning.
However, the ruling isn’t without limitations. It only applies to fully-reserved, dollar-backed stablecoins, leaving algorithmic stablecoins (like Terra’s UST, which infamously collapsed in 2022) and yield-bearing stablecoins in regulatory limbo. These types of stablecoins, often used in more complex DeFi protocols, remain subject to potential scrutiny, creating uncertainty for projects relying on them. Additionally, the decision faced internal pushback within the SEC. Commissioner Caroline Crenshaw dissented, arguing that the guidance contained legal and factual errors and could undermine investor protections, as noted in posts on X. Her critique highlights ongoing debates within the agency about how to balance innovation with regulation, suggesting that the stablecoin regulatory landscape is far from settled. Despite these caveats, the SEC’s ruling marks a significant step forward for the crypto industry.
The IMF’s BPM7 Framework – Standardizing Blockchain in Global Finance
Just weeks before the SEC’s stablecoin ruling, the International Monetary Fund (IMF) took a significant step toward integrating blockchain into the global financial system with the release of its seventh edition of the Balance of Payments Manual (BPM7) on March 20, 2025. For the first time, this manual includes detailed guidelines on how to classify and record digital assets like stablecoins and cryptocurrencies in global economic statistics. Stablecoins backed by liabilities, such as dollar-backed tokens like USDC, are treated as financial instruments, while assets like Bitcoin, which lack backing, are classified as non-productive, nonfinancial assets under the capital account. Additionally, the IMF recognizes blockchain activities like mining and staking—common on smart contract platforms—as computer services, allowing countries to track their economic contributions as exports or imports.
The significance of BPM7 cannot be overstated. Developed with input from over 160 countries, this framework provides a standardized way for nations to monitor the growing role of digital assets in international trade, investment, and economic performance. By formally recognizing blockchain transactions in global statistics, the IMF is legitimizing these technologies as part of the modern financial landscape. This move signals to governments and central banks that digital assets are here to stay, encouraging them to develop policies that accommodate rather than resist blockchain innovation. It also aligns with the IMF’s broader goal of promoting stable global growth, as outlined in its April 2025 World Economic Outlook, which projects steady but underwhelming growth amidst evolving monetary policies.
For stablecoins and smart contracts, BPM7 has profound implications. The framework enables better tracking of stablecoin flows across borders, increasing transparency and addressing regulatory concerns about illicit finance—a persistent worry for policymakers. This transparency could make regulators more comfortable with stablecoins as a medium for cross-border payments, a use case where smart contract blockchains excel. For instance, smart contracts on platforms like Solana and Sui often automate stablecoin transactions, such as payments or lending in DeFi protocols. By standardizing how these transactions are reported, BPM7 supports their integration into mainstream finance, paving the way for wider adoption. As countries aim to implement BPM7 by 2029–2030, the framework sets a global precedent for recognizing blockchain as a legitimate financial rail, with stablecoins and smart contracts at its core.
Impact on Smart Contract Blockchains – Solana and Sui in the Spotlight
The SEC’s ruling on stablecoins and the IMF’s BPM7 framework are a boon for smart contract blockchains, which are purpose-built to execute self-enforcing agreements without intermediaries. Platforms like Solana and Sui thrive in decentralized finance (DeFi), payments, and gaming, where stablecoins are a linchpin for stability and utility. By classifying fully-reserved, dollar-backed stablecoins as non-securities, the SEC has removed a major legal barrier, allowing developers to integrate these assets into smart contracts without fear of regulatory backlash. Meanwhile, the IMF’s framework legitimizes blockchain transactions in global finance, encouraging their use in cross-border payments and financial applications. Together, these developments create a fertile environment for smart contract blockchains to flourish, with Solana and Sui emerging as key players.
Solana, a high-performance layer-1 blockchain, is uniquely positioned to capitalize on this shift. Known for its scalability, Solana boasts block times of just 400 milliseconds and can process thousands of transactions per second, with fees averaging less than $0.0025. According to Electric Capital, 81% of all decentralized exchange (DEX) transactions occur on Solana, making it a DeFi powerhouse. The SEC’s ruling directly benefits Solana’s ecosystem, where stablecoins like USDC are widely used. For example, Solana Pay, an approved app integration on Shopify, enables users to spend stablecoins on merchandise, as seen in the “Onchain Holiday” shopping event. With regulatory clarity, businesses are more likely to adopt Solana Pay for payments, while developers can build more DeFi protocols—such as lending platforms or automated market makers—using stablecoins, driving further growth in Solana’s already-thriving ecosystem.
Sui, a newer layer-1 blockchain, is also set to benefit. Designed for scalability and user experience, Sui leverages an object-oriented design to enable parallel transaction processing, making it ideal for real-time financial applications. The platform supports stablecoins like USDC and FDUSD, which are used in DeFi protocols, NFT marketplaces, and gaming dApps. The SEC’s decision encourages Sui-based developers to double down on stablecoin integration, knowing that these assets are free from securities regulations. For instance, Sui’s upcoming integration of Circle’s Cross-Chain Transfer Protocol (CCTP) will allow seamless USDC transfers across blockchains, enhancing its appeal for cross-chain DeFi applications. As regulatory clarity attracts more developers, Sui’s ecosystem—already growing with projects like borrow-lending protocols and NFT marketplaces—could see exponential growth, positioning it as a rising star in the blockchain space.
The broader impact on the blockchain ecosystem is equally significant. With stablecoins now on firmer regulatory ground, institutional players and developers are more likely to invest in smart contract platforms, driving innovation in DeFi, payments, and beyond. Solana and Sui, with their focus on speed, scalability, and developer-friendly environments, are at the forefront of this wave, ready to lead the charge as blockchains become the financial rails of the future.
A Global Shift – Governments Adopting Blockchains as Financial Rails
The SEC’s stablecoin ruling and the IMF’s BPM7 framework are not isolated events but part of a broader global shift in how governments view blockchain technology. As journalist Eleanor Terrett noted on X, the crypto industry has received more regulatory clarity in the past four months of 2025 than in the previous four years, covering stablecoins, meme coins, and proof-of-work mining. This trend extends beyond the U.S., with countries like Japan, Singapore, Hong Kong, the UK, and the European Union enacting legislation to govern digital assets. The World Economic Forum predicts that by 2027, 10% of global GDP could be tokenized and stored on blockchains, reflecting a growing acceptance of this technology as a foundational financial infrastructure. The U.S. is catching up, with proposed bills like the Lummis-Gillibrand Payment Stablecoin Act aiming to create a comprehensive framework for stablecoins, balancing innovation with consumer protection.
Institutional and government involvement further underscores this shift. Major financial institutions like BlackRock, JP Morgan, and Goldman Sachs are deepening their engagement with blockchain, launching tokenized funds and exploring stablecoin-based payments. On the government side, the U.S. Department of Housing and Urban Development (HUD) is investigating blockchain and stablecoins to monitor grants, signaling a willingness to experiment with this technology in public administration. While a HUD official skeptically referred to stablecoins as “Monopoly money,” the fact that such discussions are happening at the federal level shows blockchain’s growing legitimacy. Globally, central banks are also exploring blockchain through central bank digital currencies (CBDCs), with countries like China and the Bahamas already implementing digital currencies on blockchain rails, further normalizing the technology.
Political support in the U.S. has played a crucial role in this shift. The Trump administration has taken a notably pro-crypto stance, establishing a “strategic Bitcoin reserve” and hosting a “crypto summit” to engage with industry leaders. David Sacks, a key figure in this administration, has been a vocal advocate for stablecoin clarity, emphasizing their potential to boost demand for U.S. Treasuries. The crypto industry’s influence in the 2024 U.S. elections also led to the election of pro-crypto legislators, creating a more favorable environment for blockchain adoption. As governments worldwide move from skepticism to cautious embrace, blockchains are increasingly being recognized as the financial rails of the future, with stablecoins and smart contracts driving this transformation.
Challenges and Future Implications
While the SEC’s ruling and the IMF’s BPM7 framework mark significant progress, challenges remain in fully adopting blockchains as financial rails. The SEC’s guidance only applies to fully-reserved, dollar-backed stablecoins, leaving algorithmic stablecoins—like Terra’s UST, which collapsed in 2022—and yield-bearing stablecoins in regulatory uncertainty. These assets, often used in complex DeFi protocols, could face stricter oversight, potentially stifling innovation in certain blockchain applications. Additionally, other U.S. agencies, such as the Federal Reserve, remain wary of stablecoins’ systemic risks. With a $200 billion market cap in 2025, stablecoins could impact monetary policy if they become too large, possibly prompting new regulations that could complicate their use on smart contract platforms. The European Union’s Data Act also highlights a broader issue: regulating smart contracts, which are immutable and designed to evade traditional enforcement, poses a unique challenge for governments balancing innovation with oversight.
Despite these hurdles, the future holds immense opportunities for smart contract blockchains like Solana and Sui. The SEC’s clarity on stablecoins is likely to drive their adoption in cross-border payments, remittances, and DeFi, areas where Solana and Sui excel due to their high throughput and low fees. Solana Pay, for instance, could become a go-to solution for merchants, while Sui’s focus on gaming and DeFi could attract developers building stablecoin-based applications. The World Economic Forum’s prediction that 10% of global GDP could be tokenized on blockchains by 2027 suggests a massive growth opportunity, with smart contract platforms leading the charge. Institutional adoption is also set to rise, as firms like BlackRock and JP Morgan deepen their blockchain involvement, potentially integrating stablecoins into traditional finance on scalable platforms like Solana and Sui.
Looking ahead, governments are likely to build on these developments. In the U.S., the Lummis-Gillibrand Payment Stablecoin Act, if passed, could provide a comprehensive regulatory framework, further legitimizing stablecoins and encouraging their use on blockchains. Globally, more countries may adopt the IMF’s BPM7 framework, integrating blockchain into their financial systems and fostering public-private partnerships. As regulatory clarity improves, blockchains will increasingly serve as the backbone of a new financial infrastructure, with stablecoins and smart contracts enabling faster, cheaper, and more accessible transactions. The path forward may be complex, but the trajectory is clear: blockchain’s role in global finance is only just beginning to unfold.
Conclusion
The SEC’s 2025 ruling on stablecoins and the IMF’s BPM7 framework mark a turning point for blockchain technology, legitimizing stablecoins and smart contracts as key components of global finance. Smart contract blockchains like Solana and Sui are set to thrive, driving innovation in DeFi and payments. These developments signal a paradigm shift, with governments increasingly adopting blockchains as financial rails. Readers should explore Solana and Sui-based dApps, stay informed on regulatory changes, and consider stablecoins’ role in finance’s future. As governments embrace blockchain, the future of finance is being written onchain—one smart contract at a time.