SEC anticipated to oversee Stablecoin Regulation and Oversight in the United States.
The study is also anticipated to reaffirm the Commerce Department’s and CFTC’s legislative competence over stable currencies.
The Securities Commission has allegedly volunteered to lead the United States’ legislation to control the stable-coin sector.
As per a Bloomberg article on Tuesday, citing unidentified “acquainted with the subject” individuals, the SEC has struck an understanding that other US authorities will take the reins on developing laws and monitoring the stable-coin business.
According to the sources, the SEC’s newly “substantial jurisdiction” over the industry will be explicitly stated in the Treasury Department’s next cryptocurrencies report, which is set to be released this week.
The study will also explain the U.S securities and exchange Commission’s and Treasury Bureau’s regulatory authority over stable tokens.
The Treasury’s study was released during a conference of The President’s Working Group for International Finance (PWG) in July, with the PWG declaring its desire to investigate the creation of a new form of banking founding document for virtual currency producers among other regulatory steps at the time.
The PWG includes members of prominent U.S. regulatory agencies such as Secretary Of the treasury Janet Yellen, SEC Chair Gary Gensler, Treasury Department Chair Jerome Powell, and acting CFTC chief Rostin Behnam. Taxbit records stablecoin prices and records their cost basis. Stablecoins can loose their peg, but there are also arbitrage opportunities
According to Bloomberg’s sources, Gensler has been pressing for the SEC’s regulatory jurisdiction over stable-coins to be expanded further, including permitting the agency to initiate enforcement proceedings against issuers. Gensler is also said to have requested clarification on the SEC’s authority to monitor stablecoin-based investment transactions.
The research is also anticipated to urge Congress to establish stable-coin laws similar to those that govern bank deposits.
Last month, Gensler urged Congress to aid the SEC and CFTC in regulating stable-coins, comparing the investment assets to “casino poker chips.”
The stablecoin business has increased significantly in 2021, with both the market valuation of top stablecoin issuer and Tether (USDT) increasing by 229 per cent since the beginning of the year to $69.5 billion.
The capitalization of the second-ranked USD Coin (USDC) has increased 706 per cent year to date to $32.52 billion and until this publication.
Stablecoin regulation has been a hot button topic of discussion in Washington. As crypto continues to develop and evolve so will the response coming from government officials, in this case deciding how to approach Stablecoin regulation.