SEC Commissioner Expects Tighter Stablecoin Regulation — Yellen Says Stablecoins Not Real Threat to Financial Stability – Regulation Bitcoin News

A commissioner with the U.S. Securities and Alternate Fee (SEC) expects to see stricter regulation on stablecoins. Nonetheless, Treasury Secretary Janet Yellen says stablecoins are at present “not an actual risk” to the nation’s monetary stability.

SEC Commissioner on Stablecoin Regulation

The regulation of stablecoins has been a sizzling subject this week following the Terra fiasco which noticed UST dropping its U.S. greenback peg and LUNA plunging to close zero.

A commissioner with the U.S. Securities and Alternate 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 lots of consideration.

Lawmakers to Work With Treasury Division on Stablecoin Regulation

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 confused that it’s important and pressing for Congress to cross laws governing cost 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 risk to monetary stability, however they’re rising very quickly and so they current the identical form of dangers that now we have identified 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 ought to be regulated urgently? Tell us within the feedback part under.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source methods, community results and the intersection between economics and cryptography.

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