Hester Peirce Asked For Stablecoins Regulation Amidst Terra Crisis

Due to the Terra’s UST meltdown, US Securities and Exchange Commission (SEC) commissioner Hester Peirce, dubbed Crypto Mom, said that the SEC might adopt harsher laws around crypto stablecoins shortly.

Hester Peirce Asked For Stablecoins Regulation Amidst Terra Crisis

According to a Reuters article, pro-crypto Securities and Exchange Commission (SEC) commissioner, Hester Peirce, indicated there may be some steps towards stablecoin regulation shortly. Pierce addressed the issue during an online debate hosted by the Official Monetary and Financial Institutions Forum (OMFIF), a policy think group based in London.

Stablecoins might be one area where they see some change, she added, referring to tougher crypto rules. She said that the crash of the TerraUSD stablecoin is an issue that has definitely attracted a lot of attention this week. Following the fall of the steeply Terra ecosystem, stablecoins have received a lot of attention. As a result of this week’s events, US regulators may be able to build a stablecoin structure more quickly.

Tighter regulations on crypto are unlikely to have positive results since SEC Chain Gary Gensler still views them as securities. He thinks stablecoins and cryptocurrencies in general are a danger to financial markets and the banking sector, and that they should be subject to the same regulations as other financial instruments.

Janet Yellen, the US Treasury Secretary, is also pressing for more strict rules on digital assets. She informed a Senate banking committee this week that the current market upheaval highlighted the need for a adequate regulatory system.

According to Ashley Alder, Chairperson of the International Organization of Securities Commissions (IOSCO), a worldwide committee is needed to define crypto standards. Furthermore, the International Monetary Fund (IMF) has consistently stated that standard industrial regulation is required across the world.

President Joe Biden issued an executive order in March instructing the government to assess the risks and advantages of establishing a central bank to deal with digitalization and other cryptocurrency challenges. The ripple impact of the UST fall is still visible in the market, particularly among stablecoins, where many of them, notably Tether’s USDT, have de-pegged since the fall.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Jai Hamid

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