A commissioner with the U.S. Securities and Alternate Fee (SEC) expects to see stricter regulation on stablecoins. Nevertheless, Treasury Secretary Janet Yellen says stablecoins are presently “not an actual menace” to the nation’s monetary stability.
SEC Commissioner on Stablecoin Regulation
The regulation of stablecoins has been a scorching matter this week following the Terra fiasco which noticed UST shedding its U.S. greenback peg and LUNA plunging to close zero.
A commissioner with the U.S. Securities and Alternate Fee (SEC), Hester Peirce, talked about cryptocurrency regulation Thursday throughout an occasion hosted by the London-based Official Financial and Monetary Establishments Discussion board coverage assume tank.
Peirce, who is understood within the crypto neighborhood as “crypto mother,” indicated that tighter laws on cryptocurrency, significantly stablecoins, could possibly be coming quickly. She was quoted as saying:
One place we would see some motion is round stablecoins … That’s an space that has clearly this week gotten a whole lot of consideration.
Lawmakers to Work With Treasury Division on Stablecoin Regulation
U.S. lawmakers have emphasised the pressing want for stablecoin regulation. In her testimony earlier than the Senate Committee on Banking, Housing, and City Affairs this week, Treasury Secretary Janet Yellen stressed that it’s important and pressing for Congress to move laws governing cost stablecoins.
Yellen additionally testified earlier than the Home Monetary Providers Committee this week, stating that for stablecoins:
I wouldn’t characterize it at this scale as an actual menace to monetary stability, however they’re rising very quickly and so they current the identical sort of dangers that we now have recognized for hundreds of years in reference to financial institution runs.
Each the Monetary Stability Oversight Council (FSOC) and the Federal Reserve Board have warned in regards to the dangers of stablecoin runs that threaten the nation’s monetary stability.
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