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

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

A commissioner with the U.S. Securities and Exchange Commission (SEC) expects to spot stricter regularisation connected stablecoins. However, Treasury Secretary Janet Yellen says stablecoins are presently “not a existent threat” to the country’s fiscal stability.

SEC Commissioner connected Stablecoin Regulation

The regularisation of stablecoins has been a blistery taxable this week pursuing the Terra fiasco which saw UST losing its U.S. dollar peg and LUNA plunging to adjacent zero.

A commissioner with the U.S. Securities and Exchange Commission (SEC), Hester Peirce, talked astir cryptocurrency regularisation Thursday during an lawsuit hosted by the London-based Official Monetary and Financial Institutions Forum argumentation deliberation tank.

Peirce, who is known successful the crypto assemblage arsenic “crypto mom,” indicated that tighter regulations connected cryptocurrency, peculiarly stablecoins, could beryllium coming soon. She was quoted arsenic saying:

One spot we mightiness spot immoderate question is astir stablecoins … That’s an country that has evidently this week gotten a batch of attention.

Lawmakers to Work With Treasury Department connected Stablecoin Regulation

U.S. lawmakers person emphasized the urgent request for stablecoin regulation. In her grounds earlier the Senate Committee connected Banking, Housing, and Urban Affairs this week, Treasury Secretary Janet Yellen stressed that it is important and urgent for Congress to walk authorities governing outgo stablecoins.

Yellen besides testified earlier the House Financial Services Committee this week, stating that for stablecoins:

I wouldn’t qualify it astatine this standard arsenic a existent menace to fiscal stability, but they’re increasing precise rapidly and they contiguous the aforesaid benignant of risks that we person known for centuries successful transportation with slope runs.

Both the Financial Stability Oversight Council (FSOC) and the Federal Reserve Board person warned about the risks of stablecoin runs that endanger the country’s fiscal stability.

Do you deliberation stablecoins should beryllium regulated urgently? Let america cognize successful the comments conception below.

Kevin Helms

A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.

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