Pro-crypto SEC commissioner foresees faster stablecoin regulations after Terra crash
Gary Gensler Janet Yellen Regulation SEC Terra tether Treasury usdt UST

SEC Pro-crypto commissioner provides faster stablecoin regulations after Terra crash

Hester Peirce, a pro-crypto commissioner of the Securities and Exchange Commission (SEC), known as crypto moms, said there could be some early developments toward stablecoin regulation, according to a Reuters report.

Pierce commented on the development at an online debate organized by the London – based Monetary and Financial Officials Forum (OMFIF) policy thinking group.

Stablecoin regulation is near

Speaking on encryption oversight, Pierce said stablecoins is probably the first sector to be regulated in light of the UST crash. She said:

“That [stablecoins] It’s clear that this area is getting a lot of attention this week. ”

Recently there has been a lot of attention on stables following the Terra high-flying ecosystem crash. This week ‘s events mean that U.S. regulators could act faster to establish some framework for stablecoins.

Pierce seems to be taking a more constructive approach to regulation. She recognizes the need for rules and is in favor of an innovative approach.

There are various possible options for tackling stable tires… and with experimentation, we need to allow space for failure, ”she said.

Government agencies hint at regulations

However, there are fears that such regulations would exacerbate the encryption sector and hinder innovation. SEC chairman Gary Gensler considers crypto threats and stablecoins on the money markets and banking sector.

In one of his interviews last year, Gensler previously described stables as poker chips in the “wild west” of the crypto industry.

Treasury Secretary Janet Yellen also hinted at working towards stricter regulation following the UST crash. In an appearance before the Senate banking committee this week, she said the current state of affairs in the crypto sector proves the need for regulations in space.

International Securities Organization Organization (IOSCO) Chair Ashley Alder said a global group is needed to establish crypto rules. In addition, the International Monetary Fund (IMF) has repeatedly argued the need for uniform regulation of the industry worldwide.

The ripple effect of the UST crash is still visible on the market, especially among the stables where several have been de-picked after the crash, including Tether’s USDT.

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