SEC to regulate US stablecoins
According to the major US financial media Bloomberg, local regulators have agreed that the Securities and Exchange Commission (SEC) will lead the initiatives to regulate stablecoins.
Indeed, the United States has several financial policemen. The two best known are the SEC and the Commodity Futures Trading Commission (CFTC). The latter regulates the markets for derivative products, such as futures contracts.
To avoid competition and especially a difference of opinion between the two regulators, the American authorities preferred to play it safe by giving primacy to the SEC.
However, according to the same source, it seems that the CFTC and the US Treasury will retain a role in the future regulation of local stablecoins. However, this will in no way call into question the leading role of the SEC.
👉 To read – United States: a bill strongly threatens the development of stablecoins
SEC wants to regain control of US stablecoins
The designation of the SEC as the authority with primacy to regulate stablecoins is not necessarily good news for them.
Indeed, Gary Gensler, director of the American financial policeman, has been lobbying for several months for further regulation of Tether (USDT) and others.
It would also seek to expand the regulatory domain of the SEC, including allowing the commission to take action against issuers. Likewise, Gensler would like to have an eye on transactions involving one or more US stablecoins.
While Gary Gensler was presented more as a person with a positive outlook on cryptocurrencies, his relationship today is rather ambivalent. It is sometimes positive, with the approval of the first Bitcoin ETFs (BTC), sometimes negative, especially when it refers to the regulation of exchange platforms to survive.
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Stablecoins, little loved by the American authorities
So-called stable cryptocurrencies are most often backed by the US dollar and issued by local players. However, these digital assets seem to be the ones that scare the authorities the most.
Last July, Janet Yellen, Secretary of the Treasury, brought together the chairman of the US Federal Reserve (FED) and the director of the SEC to discuss the regulation of these stablecoins alone.
Importantly, Tether was recently fined over $ 40 million by the CFTC. This is the latest twist in the woes of the USDT token issuer, which has drawn the wrath of many US state financial authorities.
In short, the regulation of stablecoins is now just an open secret. The only essential question that remains is to know what provisions will be adopted. However, to date, nothing indicates that we will go towards the positive.
👉 To read – According to Messari, the USDT will soon become the dominant stablecoin on Ethereum, ahead of the USDT
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About the author: Benjamin Allouch
Formerly a lawyer specializing in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now an independent consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.