SEC commissioner expects tighter Stablecoin regulation – Yellen says Stablecoins are not a real threat to financial stability – regulation Bitcoin news
A US Securities and Exchange Commission (SEC) commissioner expects to see stricter regulations on stack coins. However, Finance Minister Janet Yellen says that stablecoins are currently “not a real threat” to the country’s financial stability.
SEC Commissioner for Stablecoin Regulation
Regulation of stack coins has been a hot topic this week after the Terra failure that caused UST to lose its US dollar bond and LUNA plunged to near zero.
A US Securities and Exchange Commission (HEC) commissioner, Hester Peirce, spoke on cryptocurrency regulation on Thursday during an event hosted by the London-based Official Monetary and Financial Institutions Forum policy think tank.
Peirce, known in the crypto community as “crypto mom”[ads1];, indicated that tighter rules for cryptocurrencies, especially stack coins, may come soon. She was quoted as saying:
One place we can see some movement is around stablecoins … It’s an area that has obviously gotten a lot of attention this week.
Legislators will cooperate with the Ministry of Finance on Stablecoin regulation
US lawmakers have stressed the urgent need to regulate stablecoin. In her testimony before the Senate Committee on Banking, Housing and Urban Affairs this week, Finance Minister Janet Yellen stressed that it is important and urgent for Congress to pass legislation regulating payment-stable coins.
Yellen also testified before the House Financial Services Committee this week, stating that for stack coins:
I do not want to characterize it on this scale as a real threat to financial stability, but they are growing very fast and they pose the same kind of risks that we have known for centuries in connection with banking.
Both the Financial Stability Oversight Council (FSOC) and the Federal Reserve Board have warned of the risk of stablecoin races that threaten the country’s financial stability.
Do you think stack coins should be regulated soon? Let us know in the comments section below.
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