SEC Commissioner Hester Pierce has urged authorities to refer stablecoin rules to Congress as the discussion over cryptocurrency laws continues. Several people are surprised by this since they thought the SEC would take the lead in regulating this expanding industry.
- Why is Hester Pierce calling for the deferral of stablecoin regulation to Congress? What impact will this have on the cryptocurrency industry? Here’s what we know.
Digital assets known as stablecoins are indexed to the value of a physical object, such as the US dollar or gold. They are intended to offer the decentralization and anonymity of cryptocurrencies combined with the stability of conventional currencies.
Hester Pierce believes that Congress is better suited to regulate stablecoins than the SEC. According to her, Congress is in a better position than regulators to decide whether stablecoins should be governed as securities, commodities, or something else, in a recent interview.
The growing worry about stablecoins and their potential impact on financial stability is what prompted Pierce to make his remarks. Stablecoins may be a systemic concern, according to some, while others have pointed out that they may be used for illegal purposes like money laundering.
Pierce’s call to defer the development of stablecoin regulations to the Congress is likely to have a significant impact on the cryptocurrency industry. One possibility is that it would postpone the introduction of stablecoin laws, which some people feel is long overdue.
On the other hand, it can also result in more careful and thorough rules. Congress has already expressed interest in regulating cryptocurrencies, and it might be argued that they are better suited to handle the intricate problems associated with stablecoins.
The regulatory landscape for cryptocurrency
The regulatory landscape for cryptocurrency has been a topic of much debate in recent years. Most nations are yet to spell out policies and laws, while some have embraced the technology and implemented progressive restrictions. The regulatory environment in the US is complicated, mainly because many agencies providing contradicting advice on how to govern cryptocurrencies.
What’s next for stablecoin regulation
While Pierce’s call for deferring stablecoin regulations to the Congress may delay the implementation of regulations, it could also lead to more thoughtful and comprehensive regulations. It remains to be seen what form these regulations will take, but stablecoins will continue to be a topic of much discussion in the coming months.
In conclusion, Hester Pierce’s call for deferral of stablecoin regulation to Congress has sparked a new round of discussions on the regulation of cryptocurrencies. However, it is clear that stablecoins will continue to be a topic of much debate in the coming months and years.
Source: https://www.thecoinrepublic.com/2023/02/24/sec-commissioner-wants-stablecoin-regulations-postponed/