The US Treasury Department and other federal agencies are preparing to submit a report before the end of the week, which will indicate the leading role of the Securities and Exchange Commission in the regulation of stablecoins, writes Bloomberg. The authors of the report also intend to urge Congress to pass legislation that would allow regulating stablecoins at the same level as bank deposits.
It was decided to determine the powers of the SEC after its chairman, Gary Gensler, insisted on such changes in private, sources said. The new provisions will support the SEC’s ability to enforce and develop regulation for the cryptocurrency industry. The report is being prepared by the President’s Financial Markets Working Group and aims to prevent the risks of stablecoins to the wider economy.
“The amendments proposed by Gensler clearly show that the authorities will play an active role in regulating stablecoins, despite the expectation of longer-term measures. For executives in the industry, Gensler’s successful lobbying is likely to be bad news because they are already claiming that his agency is going too far, ”adds Bloomberg.
Also, according to the report, the Commission for Futures Trading (CFTC) will play a role in regulating stablecoins, and the Financial Stability Supervisory Board is invited to assess the presence of systemic risks in them.
“It doesn’t help the system at all if something called a stablecoin is actually unstable, so we don’t want these risks to escalate,” Nelly Liang, Deputy Finance Minister for Internal Finance, said at a conference last week.
In earlier comments, Gensler noted that many stablecoins have mutual fund characteristics and may fall under the jurisdiction of his service. Several issuers, including Circle and Paxos, are maintaining regulation in line with banking rules and are preparing for licensing.
Earlier, members of the presidential working group met to discuss the risks of the stablecoin Tether.
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