SEC Commissioner Hester Peirce has signaled that regulation for stablecoins will follow in the wake of Terra’s collapse.
Peirce signaled that stablecoin regulations will increase in the US.
He argued that stricter regulations are needed for the crypto industry. TerraUSD talked about the collapse of the stablecoin.
The SEC has an opportunity to capture digital currencies under its jurisdiction and the technology platforms on which they are traded.
Stablecoin Fallout Troubles Lawmakers
Nothing detailed about the stablecoin regulation has yet been disclosed.
As EC Chain Gary Gensler still sees them as securities, nothing good is likely to come out of tighter controls over crypto. He believes stablecoins and cryptocurrencies pose a threat to money markets and the banking industry.
US Treasury Secretary Janet Yellen is also adamant about stricter regulations for digital assets. He said the current market turmoil needs an “appropriate” regulatory framework.
Hester Peirce took a more prolific stance suggesting a “trial and error” approach to regulating stablecoins.
There are different potential options for approaching stablecoins… and with experimentation, we need to make room for failure there.
Calls for Global Crypto Regulation Body
A senior official has made a joint call to regulate cryptocurrencies on a global scale.
Ashley Alder, president of the International Organization of Securities Commissions (IOSCO), said:
If you look at the risks we have to address, they are numerous and there is a wall of concern about it (crypto) in the enterprise-level conversations.
He added that a global group is clearly needed to harmonize crypto rules.
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