According to a report published by Bloomberg announced Today, the US Securities and Exchange Commission could soon have the right to regulate stablecoins. Sources suggest that the US Treasury Department and other government agencies are about to release a report granting the SEC new powers.

This policy would likely apply to centrally issued stablecoins like Tethers USDT and Circles USD, as well as others like Binance USD, TrueUSD and Pax Dollar.

The rules – similar to those that currently apply to bank deposits – require companies to obtain a license. This approach is supported by stablecoin companies like Circle that aim to become commercial banks in the future.

So far, the SEC has mainly focused on regulating crypto projects that sell tokens with promises of profit, especially companies that run ICOs or similar offerings. Such assets are generally considered to be Howey test investment contracts.

Why does the SEC want control?

At first glance, the SEC’s intention does not seem to apply to stablecoins, which are designed to avoid price fluctuations and are therefore unsuitable for investors seeking high returns.

However, SEC chairman Gary Gensler said his regulator wants to oversee any investment-related token, a category that includes stablecoins, regardless of its inherent risks. Gensler previously compared stablecoins to “chippoker”, suggesting that both are risky investments.

In addition, stablecoins have downside risks. While no large stablecoin has experienced a complete loss of value, there are often small fluctuations in price.

The ongoing controversy surrounding Tether and Facebook’s upcoming stablecoin Diem has likely prompted the U.S. government to delegate new powers to the SEC.

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Annie

According to crypto briefing

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