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

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

A commissioner for the US Securities and Exchange Commission expects stricter regulation of stablecoins. However, Treasury Secretary Janet Yellen says stablecoins are “not a real threat” to the country’s financial stability at this time.

SEC Commissioner for 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 crashed to near zero.

Securities and Exchange Commission Commissioner Hester Peirce spoke on cryptocurrency regulation Thursday during an event hosted by the policy think tank of the Official Monetary and Financial Institutions Forum in London.

Known as “crypto mom” in the crypto community, Peirce hinted that there could be tighter regulations for cryptocurrencies, particularly stablecoins, soon. She was quoted as saying:

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

Lawmakers work with Treasury Department on stablecoin regulation

US lawmakers have stressed the urgent need for stablecoin regulation. Testifying before the Senate Committee on Banking, Housing and Urban Affairs this week, Treasury Secretary Janet Yellen stressed the importance and urgency of Congress passing legislation regulating payments stablecoins.

Yellen also testified before the House Financial Services Committee this week, stating that for stablecoins:

I wouldn’t call them a real threat to financial stability on this scale, but they’re growing very fast and pose the same risks we’ve known about bank runs for centuries.

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

Do you think stablecoins should be regulated urgently? Let us know in the comment section below.

Kevin Helms

As an Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economics and cryptography.

photo credit: Shutterstock, Pixabay, WikiCommons

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