Stablecoin regulations must leave room for error, says crypto-friendly SEC Commissioner Hester Peirce

Stablecoin regulations must leave room for error, says crypto-friendly SEC Commissioner Hester Peirce

SEC official Hester Peirce says future stablecoin regulation must leave room for “failure” given this week’s Terra (LUNA) collapse.

During his speech at the Digital Monetary Institute’s annual symposium on Thursday, Peirce predicted that stablecoin regulation could be on the horizon.

“I think in one place … we could see that there is some movement in stablecoins. That’s an area that obviously got a lot of attention this week, but more generally I think it’s an area within crypto that’s really had quite a moment and there’s a lot of use of stablecoins and that’s why they think People in the future If this gets any bigger, do we want to have some sort of regulatory framework? Some people have suggested that this should be at the SEC. Other people want it to be with banking regulators, so there are various potential options for approaching stablecoins.”

Peirce, a well-known crypto supporter, says that one term can cover very different types of assets, explaining that there can be big differences between stablecoins. She notes that manufacturing regulation is difficult, as it must cover the diverse offerings of stablecoins that exist today, as well as any potential technologies that might exist in the future.

“What I’ve been urging us to do at the SEC is to use our regulatory tools that allow us to provide exceptions to our existing rules that are tailored to a specific technology, and that’s how we could do that and that would allow for iterations.” and experiments, which I think is very important at the beginning of any technology.

And as for experimenting, I should just say that we also need to leave room for failure, because that’s part of trying new things, of course. And our framework really allows for that kind of trial and error, and I hope we’ll use it for that purpose.”

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