US Securities and Exchange Commission (SEC) Commissioner Hester Perth (commonly known as “Cryptomama”) has suggested that Terra’s UST crash could quickly develop stricter rules for crypto stablecoins.
According to Reuters ReportOn May 12, Pierce commented on the progress of an online discussion hosted by a policy think tank at the London-based Official Financial Institutions Forum (OMFIF).
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When asked about cryptocurrency oversight, Pierce said that Stablecoin is likely to be the first sector to be regulated in the light of the UST crash.
that is [stablecoins] An area that clearly got a lot of attention this week.
Commissioner Hester Perth is taking a more constructive strategy towards regulation. She recognizes the need for rules and supports an innovative approach towards it.
There are various potential options for approaching Stablecoin … and experiments need to give room for failure.
In addition, she commented on the opportunity for the SEC to acquire cryptocurrencies and a technology platform that can be traded under the institution’s wide range of rule-making bodies.
Flickering due to regulations from the SEC
In the United States, it takes a long time for new rules and regulations to come into force. So far, there’s nothing specific about stablecoin rules, but this week’s event on UST could accelerate things now.
However, there are many speculations that these regulations will continue to worsen the digital currency market and curb improvement. For example, Gary Gensler, head of the SEC, believes that digital currencies and stablecoin are dangerous to the fixed income market and the financial industry.
In one of last year’s statements about crypto, Gensler compared Stablecoin with tools for gambling in old-fashioned casinos.
Gensler Explained Stablecoin as a poker chip in the “Wild West” of the crypto industry. He added;
There are many casinos here in Wild West, and poker chips are these stablecoins at the casino game table.
This week, US Treasury Secretary Janet Yellen also talked about the “appropriate” regulatory framework for the UST’s clash with the Senate’s banking committee. In addition, she said the current status of events in the crypto sector proves the need for regulation in space.
As in March, President Joe Biden issued an executive order Instruct the government to estimate the risks and benefits of establishing a central bank due to digital and other cryptocurrency issues.
The International Organization of Securities Commissions (IOSCO) Chairman Ashley Alder and the International Monetary Fund (IMF) are also on the sidelines, and cryptocurrency rules need to be established. They believe that industries around the world need to be unified.
Ashley Alder, Chair of IOSCO, said:
Looking at the risks we need to deal with, there are multiple of them, and there is a wall of concern about this (cipher) in conversations at the organizational level.
Therefore, a more practical approach, “trial and error,” has been proposed by Hester Perth to regulate Stablecoin.
Featured image from Pixabay, and chart from Tradingview.com