SEC is expected to lead U.S. stablecoin regulation and enforcement
U.S. regulators have agreed that the Securities and Exchange Commission (SEC) will lead U.S. efforts to regulate the stablecoin sector.
26 Bloomberg report, citing anonymous sources “familiar with the matter”, the SEC has reached an agreement with other US agencies to provide the bill and industry oversight.
Sources added that the SEC’s newly found “substantial authority” over the sector will be formally revealed in the Treasury Department’s upcoming stablecoin report due to be released this week.
The report will also clarify the Commodity Futures Trading Commission (CFTC) regulator and the Treasury Department regarding stability tokens.
The Treasury Report was released during the Chairman’s Working Group on Financial Markets (PWG) meeting in July, with the PWG announcing its intention to create a kind of banking charter for stablecoin issuers at the time, along with other regulatory measures.
The PWG is made up of top officials from the top US regulators, including Treasury Secretary Janet Yellen, SEC chairman Gary Gensler, Federal Reserve chairman Jerome Powell, and acting CFTC chief Rostin Behnam.
Bloomberg sources claim that Gensler has pushed for further expansion of the SEC’s regulatory scope for stablecoins, including authorizing the commission to take enforcement action against crypto assets. Gensler is also said to have tried to clarify what powers the SEC has to monitor stablecoin-based investment transactions.
The report is expected to also call on Congress to enact similar bank deposit oversight regulations for the stablecoin sector.
Related: The US Treasury Department says it needs to “modernize and adapt” to digital currencies
Last month, Gensler called on Congress to help the SEC and CFTC regulate stablecoins. Gensler compared dollar-linked assets to “casino poker chips”.
The stablecoin market grew significantly in 2021 and the market capitalization of leading stablecoin issuer Tether (USDT) has exploded this year, with market capitalization increasing 229% year-to-date to $ 69.5 billion.
The USD secondary coin has also seen tremendous growth, with its capitalization increasing 706% to date, reaching $ 32.52 billion at the time of this writing.