A U.S. Securities and Exchange Commission (SEC) commissioner expects to see tougher regulation on stablecoins. However, Treasury Secretary Janet Yellen said stablecoins are currently “not a real threat” to the country’s financial stability.
SEC Commissioner on Stablecoin Regulation
Stablecoin regulation has been a hot topic this week following the Terra fiasco which saw UST lose its peg to the US dollar and LUNA plunge to near zero.
A U.S. Securities and Exchange Commission (SEC) commissioner, Hester Peirce, spoke about cryptocurrency regulation Thursday at an event hosted by the Official Monetary and Financial Institutions Forum policy think tank based in London.
Peirce, known in the crypto community as the “crypto mom,” indicated that tougher regulations on cryptocurrency, especially stablecoins, may be coming soon. She was quoted as saying:
One place where we might see some movement is around stablecoins… This is an area that has obviously gotten a lot of attention this week.
Lawmakers to work with Treasury Department on stablecoin regulation
US lawmakers have highlighted the urgent need for stablecoin regulation. In testimony before the Senate Banking, Housing, and Urban Affairs Committee this week, Treasury Secretary Janet Yellen stressed the importance and urgency of Congress passing legislation governing payment stablecoins.
Yellen also testified before the House Financial Services Committee this week, stating that for stablecoins:
I would not characterize them on this scale as a real threat to financial stability, but they are growing very rapidly and they present the same type of risks that we have known for centuries with regard to bank runs.
The Financial Stability Oversight Council (FSOC) and the Federal Reserve Board have warned of the risks of stablecoin races that threaten the country’s financial stability.
Do you think stablecoins should be regulated urgently? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
#SEC #Commissioner #Expects #Tougher #Regulation #Stablecoins #Yellen #Stablecoins #Real #Threat #Financial #Stability