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

One commissioner from the U.S Securities and Exchange Commission (SEC), expects that stablecoins will be subject to stricter regulation. However, Treasury Secretary Janet Yellen says stablecoins are currently “not a real threat” to the country’s financial stability.

SEC Commissioner Stablecoin Regulation

Following the Terra fiasco that saw UST lose its U.S. Dollar peg, and LUNA plunge to nearly zero, there has been much discussion about regulation of stablecoins.

Hester Peirce (US Securities and Exchange Commission) was a commissioner who spoke about crypto regulation at a London-based event organized by the Official Monetary and Financial Institutions Forum.

Peirce, who is known in the crypto community as “crypto mom,” indicated that tighter regulations on cryptocurrency, particularly stablecoins, could be coming soon. According to her, she said:

One place we might see some movement is around stablecoins … That’s an area that has obviously this week gotten a lot of attention.

Stablecoin Regulation: Lawmakers Will Work with the Treasury Department

U.S. lawmakers stressed the need to regulate stablecoins. Janet Yellen, Treasury secretary, stated that Congress must pass legislation regulating payment stablecoins in her testimony this week before the Senate Committee on Banking, Housing, and Urban Affairs.

Yellen was also present before the House Financial Services Committee. She stated that she supports stablecoins.

I wouldn’t characterize it at this scale as a real threat to financial stability, but they’re growing very rapidly and they present the same kind of risks that we have known for centuries in connection with bank runs.

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

Is it urgent that you regulate stablecoins? Comment below to let us know your thoughts.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.