{"id":202802,"date":"2021-10-27T21:00:20","date_gmt":"2021-10-27T20:00:20","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=202802"},"modified":"2021-10-27T16:15:01","modified_gmt":"2021-10-27T15:15:01","slug":"us-sec-expected-to-have-the-key-role-in-policing-stablecoins-like-tether","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/us-sec-expected-to-have-the-key-role-in-policing-stablecoins-like-tether\/","title":{"rendered":"U.S. SEC expected to have the key role in policing stablecoins like Tether"},"content":{"rendered":"

The US Securities and Exchange Commission (SEC) is about to play a leading authority role when it comes to proposing legislation and overseeing the stablecoin sector, <\/span>Bloomberg<\/span><\/i><\/a> recently reported, citing anonymous sources.<\/span><\/p>\n

The sources \u201cfamiliar with the matter\u201d leaked that a report expected this week by the US Treasury Department and other agencies will also urge Congress to pass legislation determining that stablecoins should be regulated similarly to bank deposits.<\/span><\/p>\n

President\u2019s Working Group on Financial Markets<\/strong><\/h2>\n

While spokespeople for the SEC, CFTC, and Treasury declined to comment on the pending report, the leaked information suggests that it will also reaffirm that the Commodity Futures Trading Commission (CFTC) has a role in overseeing the sector.<\/span><\/p>\n

The report is being prepared by the President\u2019s Working Group on Financial Markets, which comprises head representatives from the country\u2019s main regulatory agencies, including Secretary of the Treasury Janet L. Yellen, Federal Reserve Chairman Jerome <\/span>Powell<\/span><\/a>, SEC Chairman Gary Gensler and CFTC Chairman Rostin Behnam.<\/span><\/p>\n

The coming recommendations, which are set to break down how the Biden administration will regulate the sector across several agencies, were announced in the <\/span>group\u2019s meeting<\/span><\/a> in July, during which Yellen underscored the need to \u201cact quickly to ensure there is an appropriate US regulatory framework in place.\u201d<\/span><\/p>\n

Gensler pushed for more power\u00a0<\/strong><\/h2>\n

\u201cLanguage was added to emphasize the SEC\u2019s powers after the agency\u2019s head, Gensler, pushed for changes behind closed doors,\u201d the sources disclosed to <\/span>Bloomberg<\/span><\/i> about the discussions held by the group in private.<\/span><\/p>\n

According to Gensler, who recently <\/span>compared<\/span><\/a> stablecoins to casino chips, the two main market agencies, the SEC and the CFTC, would both benefit from the Congress in terms of regulation and enforcement for stablecoins.<\/span><\/p>\n

And while the report suggests that Gensler has successfully lobbied his way to greater regulatory power over US dollar-backed assets like Tether (<\/span>USDT<\/span><\/a>) and USD Coin (<\/span>USDC<\/span><\/a>), some <\/span>industry insiders<\/span><\/a> and investors expect that the increased scrutiny will boost the adoption of decentralized stablecoins.<\/span><\/p>\n

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SEC coming after stablecoins… <\/p>\n

Stables like $mim<\/a> and $ust<\/a> will benefit from thishttps:\/\/t.co\/7THvtQtgIB<\/a><\/p>\n

— Lark Davis (@TheCryptoLark) October 25, 2021<\/a><\/p><\/blockquote>\n