SEC is expected to guide the regulation and enforcement of stablecoins in the United States

Apparently, U.S. regulators have agreed that the Securities and Exchange Commission (SEC) will lead U.S. efforts to regulate the stablecoin sector.

According to a Bloomberg report on Oct. 26, citing anonymous sources “familiar with the matter”, The SEC has reached an agreement with other U.S. agencies to take the reins of proposed legislation and oversee the stablecoin sector.

Sources add that The SEC’s new “major authority” over the sector will be officially announced in the Treasury Department’s upcoming stablecoin reportplanned to be released this week.

SEC is expected to guide the regulation and enforcement of stablecoins in the United States
SEC is expected to guide the regulation and enforcement of stablecoins in the United States

The report will also clarify the regulatory responsibilities of the Commodity Futures Trading Commission (CFTC) and the Treasury Department. in terms of stable tokens.

The Treasury report was announced during a meeting of the President’s Working Group on Financial Markets (PWG) in July at the PWG has announced its intention to examine the creation of a new type of bank letter for stablecoin issuers, among other regulatory measures.

The PWG is made up of key representatives from the major regulators in the United Statessuch as Treasury Secretary Janet Yellen, SEC chairman Gary Gensler, Federal Reserve chairman Jerome Powell and CFTC chief Rostin Behnam.

Bloomberg sources claim that Gensler has urged the SEC’s regulatory scope for stablecoins to be expanded, including empowering the commission to take enforcement action against issuers.. Gensler also tried to clarify what powers the SEC has to monitor investment transactions based on stablecoins.

Likewise The report is expected to call on Congress to enact similar regulations similar to those used to monitor bank deposits for the stablecoin sector..

Last month, Gensler asked Congress, the SEC, and the CFTC to help regulate stablecoins, and Gensler compared dollar-indexed assets to “poker chips in the casino”..

The stablecoin market grew significantly in 2021 and the market capitalization of the main stablecoin issuer Tether (USDT) has skyrocketed this year, with market cap growing 229% year-to-date to $ 69.5 billion.

The second classified, USD Coin has also seen meteoric growth, as its capitalization has soared 706% to $ 32.52 billion so far this year. at the time of this writing.

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