Among SEC’s most vocal proponents of cryptocurrency, cryptocurrency mom Hester Peirce told Reuters that regulatory action on stablecoins could be on the horizon shortly. Pierce addressed the issue during an online debate hosted by the OMFIF, a regulatory think group based in London.
Regulation of Stablecoins is Approaching
Concerning cryptocurrency regulation and the UST meltdown, Pierce stated that stablecoins would probably be the first to be governed. She explained that stablecoins have certainly gained enough recognition this week.
Stablecoins have been getting enough recognition lately, especially after the fall of the strong Terra community. As a result of this week’s events, United States regulators may be able to build a stablecoin structure more quickly.
Pierce looks to be approaching regulation in a more positive light. She understands the importance of regulations and prefers a creative approach to them. There are several possible approaches to addressing stablecoins. Every user must provide room for failure when it comes to experimentation.
Government Agencies Provide Suggestions on Regulations
Nevertheless, there are concerns that such laws may suffocate innovation in the cryptocurrency industry. Gensler, the Securities and Exchange Commission head, believes that cryptocurrency and stablecoins pose a danger to the financial sector.
As Gensler explained in a press conference in 2021, stablecoins are like poker chips of the wild west for the cryptocurrency sector. Following the collapse of UST, Janet Yellen signaled that she was working on tighter rules. Recently, she testified before a Senate banking panel, saying that the present state of affairs shows an urgent need for legislation in the cryptocurrency industry.
According to Ashley Alder, a global committee is needed to define crypto standards. Furthermore, the IMF has consistently stated that standard industry supervision is required worldwide. The fallout from the UST catastrophe may still be seen in the market, notably among stablecoins like USDT, which de-pegged after the crash.
Tether Redemptions for US Retail Investors Canceled
Furthermore, the terms and conditions say that citizens of the United States are not permitted to use the Tether.to website. Tether Limited, not Tether International Limited, serves customers in the United States. A Digital Tokens Wallet cannot be used on this site by anybody who’s or is associated with a company that’s in the United States.
Individual, including, but not confined to, a person or organization. Tether can make allowances to this rule at its own will, but only for Eligible Contract Participants, who must be clients of TLTD. The phrase also implies that Eligible Contract Participants can engage with Tether Limited.
Section 1a(18) of the US CEA defines this as individual investors worth $10M or more, persons worth $1M or more, financial companies, insurance businesses, and investment businesses. It seems to be considerably harsher than the rules for professional investors, excluding anyone with household earnings of about $200,000.