Due to the price cut of Stablecoin TerraUSD and the related collapse of the cryptocurrency LUNA, stablecoin regulation is required worldwide. From the US Treasury Secretary to the Securities and Exchange Commission (SEC) or the Bank for International Settlements (BIS), regulators around the world have expressed concern about the need to enact stablecoin and regulations.
Big tech companies had a quiet week as the UK announced new rules to be introduced next month. One of the bills most likely to affect Big Tech may not be adopted until next year.
Western financial and banking regulators continued to work on bank mergers and artificial intelligence (AI) regulation, expressing their views on non-bank lenders and fair lending.
Cryptography and stablecoin
The loss of value at TerraUSD has given good argument to some regulators that Stablecoin is susceptible to panic-based execution. And the run is what happened earlier this week. US Treasury Secretary Janet Yellen mentioned the collapse of TerraUSD in a hearing at the Senate Banking Commission on Tuesday morning (May 10), citing the “risks to financial stability” that Stablecoin poses. I pointed out.
Pablo Hernández de Cos, chair of the Basel Committee on Banking Supervision and Governor of the Bank of Spain, warned Thursday (May 12) that the rapid development of decentralized finance (DeFi) and crypto assets requires positive and positive regulation. bottom. Director approach. Some assets are considered “stable” and “currency”, but they often fail in both respects, Hernandez Decos argued.
Also on Thursday, SEC Commissioner Hester Perth said there may be some movement around Stablecoin to enact new regulations. SEC Chairman Gary Gensler also said his institution needs to investigate the risks of Stablecoin due to growing concerns about financial stability and monetary policy.
During the stablecoin and cryptocurrency meltdown, Coinbase registered with the SEC “to make it easier to access the capital markets quickly and efficiently when needed.” The company has no plans to offer securities at this time, but this registration will allow Coinbase to “provide and sell securities in the future.” Registration may allow Coinbase to be considered security by the SEC or courts. You will be able to quickly deliver certain crypto assets on your platform.
The British government unveiled the agenda for the next parliamentary session on Tuesday. The most important bill for Big Tech is the online safety bill. It aims to reduce online damage by significantly increasing Big Tech’s responsibility to monitor content posted on the platform. Other bills such as Brexit Freedom Bill, Media Bill and Data Reform Bill will also affect Big Tech.
Bills aimed at creating new tech watchdogs with the authority to sanction big tech companies for violating competition and violating consumer rules are only discussed as “draft bills.” It does it “naturally” while the government is still planning to introduce legislation that underpins the power of the Digital Market Unit (DMU), and the parliamentary session begins on Friday (May 13). Means it may not be).
Consumer Finance Bureau (CFPB) will issue an advisory opinion on Monday (May 9), and banks and other lenders will follow fair lending laws not only during the application process, but also when canceling or changing terms. Confirmed that it is necessary. The rules apply before and after the bank approves the credit.
On the same day, the CFPB upheld payday loan lender rules in court. Industry groups argued that the payday rules enacted in 2017 violate federal rule-making procedures and Supreme Court case law and should be withdrawn.
Lending rules may also be subject to regulatory review in Europe. The The European Banking Authority (EBA) warns that a largely unharmonious regulatory system for non-bank lending in Europe could pose challenges for stakeholders, including regulators, buy now and pay deferred. Recommended changes that may affect lending solutions such as (BNPL), peer-to-peer (P2P) platform.
At an event on Monday, Office of the Comptroller of the Currency, Michael Sue, discussed the need to rethink the bank’s merger valuation and instructed the team to work with the Ministry of Justice (DOJ) and other banking regulators to consider the merger framework. Did.