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SEC Commissioner on Stablecoin Regulation
Following the Terra incident, which saw UST lose its dollar peg and LUNA plummet to almost zero, stablecoin regulation has become a hot issue this week.
Hester Peirce, a commissioner with the US Securities and Exchange Commission (SEC), spoke on cryptocurrency regulation at an event hosted by the Official Monetary and Financial Institutions Forum policy think tank in London on Thursday.
Peirce, dubbed "crypto mom" by the crypto community, hinted that stronger controls on cryptocurrency, particularly stablecoins, could be on the way shortly. According to reports, 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.
Lawmakers to Work With Treasury Department on Stablecoin Regulation
Stablecoin regulation is urgently needed, according to US politicians. Treasury Secretary Janet Yellen underlined the importance of Congress passing legislation governing payment stablecoins in her hearing before the Senate Committee on Banking, Housing, and Urban Affairs this week.
This week, Yellen appeared before the House Financial Services Committee, saying about 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.
The Financial Stability Oversight Council (FSOC) and the Federal Reserve Board have both cautioned that stablecoin runs could jeopardize the country's financial stability.
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