![]() Reportedly, Gensler lobbied US Secretary of the Treasury Janet Yellen and other members of the report team to allow the legislation that would empower the SEC to regulate stablecoins. Under his leadership, the SEC has started looking into tokens launched by Coinbase and Circle. Furthermore, he has referred to stablecoins as ‘poker chips,’ referencing their high-risk potential. He believes that stablecoins fall under the regulatory jurisdiction of the SEC since they can sometimes invest in corporate bonds and other assets. Furthermore, the report might also propose that another regulatory body, the Financial Stability Oversight Council, look into the systemic risk factor of these tokens.Įver since he was appointed the head of the SEC, Gensler has been vocal about increasing regulations on the digital currency and blockchain industry. However, the language was amended reportedly due to the insistence of SEC chief Gary Gensler to include the SEC’s right to regulate stablecoin activity in the investment sector. Gensler Gets His WayĬreating a new bank charter for companies that issue stablecoins was proposed in earlier versions of the report. The report will also address the Biden administration’s POA for regulating the sector. The President’s Working Group on Financial Markets has been in charge of formulating the report, which will address concerns of digital currencies threatening the economy. ![]() The unnamed source also claimed that the highly anticipated report from the Treasury Department and other US government agencies would also appeal to Congress to impose regulations on these stablecoins similar to bank accounts. According to individuals in the know, the upcoming report from the US Treasury Department could give significant authority to the Securities and Exchanges Commission (SEC) over stablecoins.
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