SEC set to oversee stablecoins, says report
Upcoming report could grant SEC increased power to pursue crypto-related enforcement actions
The US Securities and Exchange Commission (SEC) looks set to be granted the authority to oversee and regulate stablecoins, according to a report by Bloomberg.
The burgeoning of the digital asset space in recent years has led to a struggle between the various regulators of the world’s largest economy as to who should oversee what.
In a report set to be published later this week, the US Department of the Treasury – in conjunction with a slew of other agencies – will grant the SEC significant authority over those digital currencies that are pegged to a reserve asset.
The supply of stablecoins is elastic, contracting and expanding in order to maintain a fixed exchange rate with the asset in question. Stablecoins can also be pegged to a basket of assets, from national currencies to precious metals.
According to Bloomberg, an unnamed person familiar with the ongoing private discussions stated that the upcoming report will call on Congress to pass legislation specifying that coins should be regulated in a similar fashion to bank deposits.
Increased power to enforce crypto policies
SEC chair Gary Gensler is also reported to have lobbied for a reinforcement of the regulator’s ability to pursue enforcement actions and policies with regard to cryptocurrencies.
If that’s true, the news will dishearten those in the cryptocurrency industry who welcomed Gensler’s appointment earlier this year, believing the former chair of the Commodity Futures Trading Commission (CFTC) to be relatively crypto-friendly.
Even if such reports prove to be unfounded, the tightening and increased codification of stablecoin regulation will have a knock-on effect on the wider cryptocurrency space. Stablecoins such as Tether and USDC act as a key bridge between the worlds of fiat currencies and the likes of bitcoin and ethereum.
By 14:00 (BST), bitcoin traded down 0.3% at $62,764, up 45% in the past month.