A U.S. Securities and Exchange Commission (SEC) commissioner expects tighter regulation of stablecoins. However, Treasury Secretary Janet Yellen said stablecoins are currently “not a real threat” to the country’s financial stability.
SEC Stablecoin Regulatory Commissioner
Regulation of stablecoins has been a hot topic this week following the Terra fiasco, with UST losing its peg to the U.S. dollar and LUNA plummeting to near-zero levels.
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce spoke about cryptocurrency regulation Thursday at an event hosted by the London-based Official Money and Financial Institutions Forum policy think tank.
Peirce, known in the crypto community as “Crypto Mom”, said that stricter regulation of cryptocurrencies, especially stablecoins, may soon be implemented. She was quoted as saying:
Where we might see some movement is in stablecoins… an area that’s clearly been getting a lot of attention this week.
Lawmakers to work with Treasury on stablecoin regulation
U.S. lawmakers have highlighted the urgent need for stablecoin regulation.In testimony this week to the Senate Banking, Housing and Urban Affairs Committee, Treasury Secretary Janet Yellen Emphasize It is important and urgent for Congress to pass legislation on stablecoin payments.
Yellen also testified this week before the House Financial Services Committee, saying that regarding stablecoins:
I wouldn’t describe them as a real threat to financial stability on this scale, but they’re growing very fast, and they pose the same risks that we’ve had with bank runs for centuries.
Financial Stability Oversight Committee (FSOC) and Federal Reserve Board warn Regarding the risks of stablecoin operations that threaten the country’s financial stability.
Do you think stablecoins should be urgently regulated? Let us know in the comments section below.
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