SEC Commissioner Expects Tighter Stablecoin Regulation — According to a US Securities and Exchange Commission commissioner, stablecoins will be subject to more regulation. Stablecoins, on the other hand, are “not a substantial threat” to the country’s financial stability, according to Treasury Secretary Janet Yellen.
Following the Terra incident, which saw UST lose its dollar peg and LUNA plummet to almost zero, stablecoin regulation has become a hot issue this week.
At an event organized by the Official Monetary and Financial Institutions Forum policy think tank in London on Thursday, Hester Peirce, a commissioner of the US Securities and Exchange Commission (SEC), said something about cryptocurrency regulation.
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Peirce, dubbed “crypto mom” by the crypto community, hinted that stronger controls on cryptocurrency, notably stablecoins, could be on the way shortly. According to reports, she said:
“Stablecoins are one aspect that we might see some movement. This is clearly an area that has gained a lot of attention.”
Lawmakers to Work With Treasury Department on Stablecoin Regulation
Stablecoin regulation is urgently needed, according to US lawmakers. Treasury Secretary Janet Yellen underlined the importance of Congress passing legislation governing payment stablecoins in her hearing before the Senate Committee on Banking, Housing, and Urban Affairs.
Last week, Yellen appeared before the House Financial Services Committee, saying about stablecoins:
“I wouldn’t call it a significant threat to financial stability at this scale, but they’re developing quickly and pose the same kinds of hazards that have been associated with bank runs for decades.”
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SEC Commissioner Expects Tighter Stablecoin Regulation – The Financial Stability Oversight Council as well as the Federal Reserve Board have both cautioned that stablecoin runs could jeopardize the country’s financial stability.
