Stable coins, such as Tether (USDT) or USD Coin (USDC), are designed to maintain a stable value tied to a specific asset, usually a fiat currency like the U.S. dollar. These stable coins strive to provide stability and eliminate the volatility commonly associated with other cryptocurrencies like Bitcoin or Ethereum.

While stable coins may not be exempt from regulation, they are often seen as less likely to fall under the regulatory purview of the SEC when compared to other types of cryptocurrencies. This is because stable coins backed by fiat currency are typically considered as a digital representation of the underlying asset.

No stable coins are typically made by the government.
While stable coins are not directly issued by governments, some projects may collaborate with financial institutions and follow regulatory guidelines. For example, USDC (USD Coin) is a stable coin co-founded by Coinbase and Circle, which follows a regulated framework and maintains transparency in its operations. Tether (USDT) is another popular stable coin that aims to maintain a 1:1 ratio with the U.S. dollar, but it has faced scrutiny regarding its financial backing.