SEC Commissioner Calls for Accelerated Stablecoin Regulations After UST Failure

Peirce, also known by the nickname ‘Crypto Mom’, said in an online panel discussion hosted by the London-based Official Monetary and Financial Institutions Forum (OMFIF) policy think tank that there could be a move on US stablecoin regulations soon. . May 12.

Regarding the stringent regulations on the cryptocurrency sector, she said, “where we can see any movement is around stablecoins.” Talking about the collapse of the TerraUSD stablecoin, she added: “It’s definitely an area that’s been getting a lot of attention this week.”

She added that there is an opportunity for the SEC to “capture digital currencies and the technology platforms on which they are traded” under their jurisdiction. Reuters.

Stablecoin Fallout Puts Legislators in Trouble

The wheel of bureaucracy and regulation spins very slowly in the United States, and nothing has been specifically outlined for our approach to regulating stablecoins. However, things could be accelerating given the case on UST this week.

Since SEC Chain Gary Gensler still considers cryptocurrencies a security, there will be nothing good about tighter control over cryptocurrencies. He believes that stablecoins and cryptocurrencies should be subject to the same controls they have as they pose a threat to the financial markets and banking sector.

U.S. Treasury Secretary Janet Yellen is also pushing for stricter regulations on digital assets. This week she told the Senate Banking Panel that the current market turmoil showed the need for an “adequate” regulatory framework.

Hester Peirce has taken a more productive stand, proposing a “trial and error” approach to stablecoin regulation:

“There are a number of potential options for accessing stablecoins… and experimentation should allow room to fail.”

Global Cryptocurrency Regulator Requested

In the development of related regulations, a senior official has called for a joint body to regulate cryptocurrencies globally.

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

“If you look at the risks we have to address, there are multiple, and there are walls of concern about that in the institutional level conversation.”

Comparing these organizations to those already operating on climate change or Covid-19, he adds, there is clearly a need for a global group to align cryptographic rules.

“But now it is considered one of the 3Cs (COVID, Climate and Crypto) and I think it is very important. It’s on the agenda, so I don’t expect the same thing to happen next year.”

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