A commissioner with the U.S. Securities and Trade Fee (SEC) expects to see stricter regulation on stablecoins. Nonetheless, Treasury Secretary Janet Yellen says stablecoins are at present “not an actual menace” to the nation’s monetary stability.
The regulation of stablecoins has been a scorching subject this week following the Terra fiasco which noticed UST shedding its U.S. greenback peg and LUNA plunging to close zero.
A commissioner with the U.S. Securities and Trade Fee (SEC), Hester Peirce, talked about cryptocurrency regulation Thursday throughout an occasion hosted by the London-based Official Financial and Monetary Establishments Discussion board coverage assume tank.
Peirce, who is thought within the crypto neighborhood as “crypto mother,” indicated that tighter laws on cryptocurrency, significantly stablecoins, could possibly be coming quickly. She was quoted as saying:
One place we would see some motion is round stablecoins … That’s an space that has clearly this week gotten numerous consideration.
U.S. lawmakers have emphasised the pressing want for stablecoin regulation. In her testimony earlier than the Senate Committee on Banking, Housing, and City Affairs this week, Treasury Secretary Janet Yellen careworn that it can be crucial and pressing for Congress to cross laws governing fee stablecoins.
Yellen additionally testified earlier than the Home Monetary Providers Committee this week, stating that for stablecoins:
I wouldn’t characterize it at this scale as an actual menace to monetary stability, however they’re rising very quickly they usually current the identical sort of dangers that we have now recognized for hundreds of years in reference to financial institution runs.
Each the Monetary Stability Oversight Council (FSOC) and the Federal Reserve Board have warned concerning the dangers of stablecoin runs that threaten the nation’s monetary stability.
Do you assume stablecoins needs to be regulated urgently? Tell us within the feedback part under.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It isn’t a direct supply or solicitation of a suggestion to purchase or promote, or a suggestion or endorsement of any merchandise, companies, or corporations. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, instantly or not directly, for any injury or loss induced or alleged to be brought on by or in reference to using or reliance on any content material, items or companies talked about on this article.
Source link
SEC Commissioner Expects Tighter Stablecoin Regulation — Yellen Says Stablecoins Not Real Threat to Financial Stability – Regulation Bitcoin News
×Get updates delivered right to your inbox!
