The well-known Crypto mom calls for enhanced stablecoin regulation after the recent UST fiasco, as she signaled that this could come faster than expected after the recent fallout of the Terra ecosystem so let’s read more today in our latest cryptocurrency news.
Hester Peirce, the Crypto Mom calls for enhanced stablecoin regulation and said that there could be soon coming to the market amid the concerns after the fallout of the Terra ecosystem. The comments came at an online panel debate hosted by hte London-based Official Monetary and Financial Institutions Forum Policy think tank a few days ago. She added that one place we could see some movement is around stablecoins due to the regulations for the crypto sector. Talking about the collapse of the TerraUSD stablecoin, it was an area that was this week that got a lot of attention.
The SEC has a chance to capture digital currencies and the tech platforms where they are traded under the jurisdictions. The wheels of regulation turn slowly in the US and nothing specific was detailed about the approach to stablecoin regulation. However, in light of the week’s events around UST things are getting accelerated. Nothing good will likely come out of the controls over the crypto industry as SEC chair Gary Gensler considers them as securities and believes that stablecoins and crypto pose a threat to the money markets and the banking sector so they can come under the same controls that they have.
The US Treasury Secretary Janet Yellen pushed for more regulations for the digital assets and this week she told the Senate banking panel that the market turmoil illustrated the need for the appropriate regulatory framework. Peirce took a productive stance suggesting a “trial and error” approach to regulating stablecoin and stated:
“There are different potential options for approaching stablecoins…and with experimentation, we need to allow room for there to be a failure.”
In the related regulatory development, the senior official called for a joint body and regulate crypto on a daily scale. At the same OMFIF conference the chair of the International Organization of Securities Commissions Ashley Alder added:
“If you look at the risks we need to address, they are multiple and there is a wall of worry about this (crypto) in the conversations at an institutional level.”
He added that the glboal group to align crypto rules was needed heavily comparing such organizations on roups that operate for climate change or COVID-19:
“But I do think now it’s seen as one of the three C’s (COVID, climate, and crypto) so it’s very, very important. It has gone up the agenda, so I would not expect that to be the case the same time next year.”
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