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SEC Commissioner Calls for Accelerated Stablecoin Regulation After UST Fiasco

Peirce, affectionately known as “Crypto Mom,” said there would soon be movement in the US regarding cryptocurrency stablecoin-Regulations could enter on May 12th.

“One place where we might see some movement is in stablecoins,” she said, referring to tighter regulations for the crypto sector. Discussing the collapse of stablecoin TerraUSD, she added, “It’s an area that obviously got a lot of attention this week.”

According to Reuters, the SEC has the ability to capture “digital currencies and the technology platforms on which they are traded” under its jurisdiction, she added.

Stablecoin fallout worries lawmakers

The wheels of bureaucracy and regulation turn very slowly in the United States, and nothing concrete has been outlined regarding an approach to stablecoin regulation. However, given this week’s UST events, things may be speeding up now.

our recommendation SEC Commissioner Calls for Accelerated Stablecoin Regulation After UST Fiasco, Crypto Trading News

Nothing good is likely to come from tighter controls over crypto than SEC Chain Gary Gensler still considers them securities. He believes that stablecoins and crypto pose a threat to money markets and the banking sector, so they should fall under the same controls they have.

US Treasury Secretary Janet Yellen is also pushing for stricter regulations for digital assets. Speaking before a Senate banking panel this week, she said the current market turmoil highlights the need for a “proper” regulatory framework.

Hester Peirce has taken a more productive stance by proposing a “trial and error” approach to regulating stablecoins, stating:

“There are several potential options to approach stablecoins… and in experimenting, we must leave room for failure.”

Calls for a global crypto regulator

In a related regulatory development, a senior official has called for a joint panel to cryptocurrencies regulated at a global level.

At the same OMFIF conference, International Organization of Securities Commissions (IOSCO) Chair Ashley Alder said:

“If you look at the risks that we need to address, they’re diverse, and there’s a wall of concern about it (crypto) in the institutional-level talks.”

He added that a global group to align crypto rules is clearly needed, comparing such an organization to groups already working on climate change or Covid-19.

“But I think now it’s seen as one of the three Cs (COVID, climate and crypto) so it’s very, very important. It’s on the agenda so I wouldn’t expect it to be the same time next year,” he said.

Featured image courtesy of BusinessInsider

Source: Crypto News Deutsch

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