SEC’s Hester sees ‘movement’ on U.S. stablecoin regulations
2022.05.12 19:55
Representations of virtual currency Bitcoin are placed on a computer motherboard in this illustration taken January 21, 2021. REUTERS/Dado Ruvic/Illustration
LONDON (Reuters) – A top official at Wall Street watchdog the Securities and Exchange Commission (SEC) signalled on Thursday that stricter rules around crypto “stablecoins” could be drawing closer.
Cryptocurrency markets have about $1 trillion overall in value this week amid the collapse of a stablecoin called TerraUSD and a destabilising plunge in Tether, currently the world’s largest stablecoin by market cap.
Referring to tighter regulations, “one place we might see some movement is around stablecoins,” SEC Commissioner Hester Peirce said during an online panel debate hosted by the London-based OMFIF policy think tank.
“That’s an area that has obviously this week gotten a lot of attention.”
U.S. Treasury Secretary and former head of the Federal Reserve Janet Yellen told a Senate banking committee session this week that the turmoil in crypto markets illustrated the need for an “appropriate” regulatory framework.
