According to Peirce, what happened with the coins of land puts on the table the need for urgent regulation for stablecoins, but it is necessary to guarantee a balance that allows innovation and compliance with basic rules.
- For Peirce, it is increasingly necessary to regulate stablecoins, precisely to avoid things like what happened with UST Y MOON.
- Congress will play a fundamental role, which is why its legislative participation in the matter is necessary.
- The potential to innovate must be respected, without neglecting compliance with regulations to protect users.
The commissioner of the US Securities and Exchange Commission (SEC) Popularly known as Crypto Mom, Hester Peirce recently indicated that regulation on stablecoins could come into place sooner rather than later, especially in light of the decline of cryptocurrency ecosystem coins. land and the large number of people who were harmed.
A regulation for stablecoins is coming
This was commented by Peirce during an interview for the chain CNBC, where the commissioner highlighted that the fall of UST Y MOON puts on the table the urgent need for a regulation on stablecoins, which he hopes will not be detrimental to the development of the crypto space in the future.
In this regard, Peirce commented:
“I think it is likely that we will have a regulation much more quickly due to the events of the last few weeks. But stablecoin legislation was already on the docket, so it may move faster… However, I think what we need to make sure we do is preserve the ability of people to experiment with different models and to do so. in a way that conforms to safety standards.”
As a representative of the SEC, Peirce has always called on participants in the crypto ecosystem to operate with great restraint and caution. Given the commotion generated at the time by the protocols DeFi, The official called for companies and entities interested in launching proposals under this model to seek advice from the regulator to dispel doubts and clarify whether said assets fall within the definition of securities.
Requesting support from Congress
Although the SEC and the Commodity Futures Trading Commission (CFTC) have in their hands the responsibility of mediating around these issues, for Peirce it is very important that Congress has a much more active role, granting guidelines to these organizations to be able to act in the most appropriate way possible around these issues:
“The SEC is already acting and using the authority that it has, but I think it would be useful for Congress to step in and say, ‘SEC, this is the role that we think it should play… and to the CFTC that these are the rules that they have to follow. ‘”.
Peirce argued that although the SEQ performs a fairly precise job in this matter as a federal entity, the role of Congress will be essential to provide the body with greater versatility to address such issues:
“You could argue that the SEC would be a good regulator for retail exchanges… but that will really be up to Congress. But there is a lot of work to be done even within our existing authorities, because traditional financial institutions want to get involved in the crypto space and need our guidance. They need regulatory clarity from us.”
Balance between innovation and regulation
Finally, Peirce called for a balanced character in the regulations to come, since a balance must be maintained that allows innovation and guarantees compliance with certain rules for the benefit of all.
To do this, he stressed that it is important that both parties meet and communicate in good faith, which unfortunately has not been achieved precisely because of the predisposition of regulators regarding cryptocurrencies.
“We talk a lot about responsible innovation, but I think we also need to talk about responsible regulation alongside that, and that means as regulators we need to be willing to engage with innovators and find out, ‘These are our regulatory goals that we’re trying to achieve, how can we achieve them and still allow you to try this new product or service and see if the market likes it?’”
Angel Di Matteo version / DailyBitcoin
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