Stablecoins may not fall under the jurisdiction of the SEC, Commissioner Pierce said.

The recent turmoil in the cryptocurrency market caused by the collapse of Terra has brought stablecoins back into the spotlight. At this time, it’s unclear what’s next for the top U.S. financial watchdog (the Securities and Exchange Commission) on crypto regulation.

The SEC Commissioner said in a recent interview that stablecoin regulations may not fall under the SEC’s jurisdiction, and the US Congress has investigated the issue of providing guidance.

Parliament’s role

A day after SEC Chairman Gary Gensler warned crypto investors that more coins could be near zero, as Terra did, Commissioner Hester Peirce also weighed in on regulations regarding stablecoins and other cryptocurrencies. .

Pierce, famous for her cryptocurrency advocacy position, said: interview She would personally like to see a clear regulatory framework initiated by the SEC for the industry, but at the same time may not be within the jurisdiction of authorities.

“Stablecoins may or may not be under the jurisdiction of the SEC, but the facts and circumstances matter… it has been reviewed by Congress.”

She added that the scale of the impact of Terra’s crash could allow Congress to work quickly to create new regulations for the industry.

When asked about the jurisdiction over crypto regulations between the SEC and the Commodity Futures Trading Commission (CFTC), which oversees the derivatives market, Peirce acknowledged that some aspects remain unclear, and for this reason Congress may have to specify . each area of ​​responsibility.

She also used the example of a “broker-dealer” or “investment advisor” who would like to work with cryptocurrencies as part of an area where the SEC should intervene and provide regulatory clarity. She also said that when the SEC was asked about doubling its crypto-enforcement team to strengthen crypto investor protection, the commissioner said she would devote more resources to “the regulatory and compliance aspects.”

The SEC’s role in Elon Musk’s Twitter bid

In an interview, the commissioner also answered questions about the SEC’s jurisdiction over Elon Musk’s bid on Twitter, which is now pending. She explained that while the Commission is a public regulator that ensures that disclosures are consistent with the rules, the authorities are not “performance regulators.”

Last week, Elon Musk stopped taking over Twitter due to issues with fake accounts and scams on the popular social media platform. The expected deal has been put on hold until we have details supporting the reported claim that spam and fake accounts account for less than 5% of all Twitter users.

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