A commissioner with the U.S. Securities and Exchange Commission (SEC) expects to see more stringent regulation on stablecoins. However, Treasury Secretary Janet Yellen says stablecoins are presently “not a real threat” to the nation’s financial stability.
SEC Commissioner on Stablecoin Regulation
The regulation of stablecoins has actually been a hot subject today following the Terra mess which saw UST losing its U.S. dollar peg and LUNA plunging to near no.
A commissioner with the U.S. Securities and Exchange Commission (SEC), Hester Peirce, spoke about cryptocurrency regulation Thursday throughout an occasion hosted by the London-based Official Monetary and Financial Institutions Forum policy think tank.
Peirce, who is understood in the crypto community as “crypto mom,” suggested that tighter policies on cryptocurrency, especially stablecoins, might be coming quickly. She was priced quote as stating:
One location we may see some motion is around stablecoins … That’s a location that has clearly today gotten a great deal of attention.
Lawmakers to Work With Treasury Department on Stablecoin Regulation
U.S. legislators have actually highlighted the immediate requirement for stablecoin regulation. In her statement prior to the Senate Committee on Banking, Housing, and Urban Affairs today, Treasury Secretary Janet Yellen worried that it is necessary and immediate for Congress to pass legislation governing payment stablecoins.
Yellen likewise affirmed prior to the House Financial Services Committee today, specifying that for stablecoins:
I wouldn’t identify it at this scale as a real threat to financial stability, however they’re growing really quickly and they provide the exact same sort of threats that we have actually understood for centuries in connection with bank runs.
Both the Financial Stability Oversight Council (FSOC) and the Federal Reserve Board have actually alerted about the threats of stablecoin runs that threaten the nation’s financial stability.
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