Commissioner Hester Peirce – also known as the “Crypto Mom” of the Securities and Exchange Commission (SEC) – supports a regulatory framework for stablecoins that allows “room for failure.”
speak online control panel On May 12, Peirce, the Official Monetary and Financial Institutions Forum (OMFIF) hosted by a financial think tank, was asked to clarify what U.S. regulators are doing with regard to cryptocurrencies.
“We may see some movement around stablecoins,” Peirce replied, “and that’s one area that’s been getting a lot of attention this week.”
“It’s an area in cryptocurrencies that has really been around for quite some time and there’s been a lot of use of stablecoins, so people are thinking, if this gets bigger, do we want some kind of regulatory framework?”
Peirce said she has urged the SEC to use its regulatory powers to provide exemptions for specific technologies, which she said would allow for important experiments.
“We need to make room for failure because that’s obviously part of trying new things, and our framework does allow for that kind of trial and error. I hope we’ll use it for that purpose.”
this Decoupling of Algorithmic Dollar Stablecoins TerraUSD (UST) was mentioned by U.S. capital officials earlier this week, and U.S. Treasury Secretary Janet Yellen said at a May 10 Senate hearing, A “Consistent Federal Framework” for Stablecoins It needs to be developed according to the actual situation.
Two days later, on Thursday, May 12, Yellen said stablecoins de-pegged from the U.S. dollar Does not pose a threat to the country’s financial stability Because they haven’t reached the scale where falling prices would pose a risk. Currently, the top five USD stablecoins have a market cap of more than $154 billion, or about 11% of the total cryptocurrency market cap of $1.36 trillion. Coin Tiger.
Speaking further about the regulatory environment for stablecoins, Peirce said that regulators must remember that the term covers multiple assets:
“You might say ‘stablecoins’ and one stablecoin might not look like another stablecoin at all. I think in dealing with all the conversations about cryptocurrencies, understanding that there are a lot of changes that make it difficult to develop a regulatory framework ,this point is very important.”
She added that the regulations “try to cover what exists today” but also “what will exist tomorrow…it’s not easy to do.”