U.S. Securities and Exchange Commission (SEC) authorities Hester Peirce says future stablecoin policy requires to allow room for “failure” amidst the collapse of Terra (LUNA) today.
While speaking at the yearly Digital Monetary Institute Symposium on Thursday, Peirce anticipated that stablecoin policy might be on the horizon.
“I think one place… We might see some movement is around stablecoins. That’s an area that obviously this week has gotten a lot of attention, but I think more generally, it’s been one area within crypto that’s really had quite a moment, and there’s a lot of use of stablecoins and therefore, people are thinking down the road if this gets even bigger, do we want to have some kind of a regulatory framework. Some people have suggested that should be at the SEC. Other people want it to be at the banking regulators, so there are different potential options for approaching stablecoins.”
Peirce, a kept in mind crypto advocate, says that a person term can cover extremely various kinds of properties, describing that there can be big variations amongst stablecoins. She keeps in mind crafting policy is tough due to the fact that it requires to cover the different offerings of stablecoins that exist today, along with any possible innovation that might exist in the future.
“What I’ve prompted us to do at the SEC is to utilize our regulative tools that we have which allow us to supply exemptions from our existing guidelines that are customized to a specific innovation, therefore we might be doing that which would allow for model and experimentation, which I believe is truly essential at the beginning of any innovation.
And with experimentation, I ought to simply state we need to allow room for there to be failure too since that undoubtedly belongs to attempting brand-new things out. And our structure truly does allow for that sort of experimentation, and I hope that we will utilize it for that function.”
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