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- The recent instance of Terra’s crash has affected the whole crypto industry currently witnessing bearish trends.
- Following this, Crypto Mom has hinted that SEC might develop stricter rules regarding crypto stablecoins soon.
- It is to see how the US moves forwards with the process after Terra’s breakdown as it came as a shock for the community.
Crypto mom, a popular name for the U.S. Securities and Exchange Commission (SEC) commissioner Hester Peirce has signified that SEC might develop stricter rules regarding crypto stablecoins soon due to TerraUSD (UST) huge crash instance.
A report by Reuters highlights that on May 12, Pierce expressed his views on the progress in an online discussion hosted by the London-based Official Monetary and Financial Institutions Forum (OMFIF) policy think tank.
Pierce cited that stablecoins are likely to be the first sector to be regulated given the incident of the UST crash. And that stablecoins is a section that has attracted a lot of attention in the week.
Furthermore, Hester Pierce is taking a more constructive strategy when it comes to regulation. She agrees about the need for rules and supports an innovative approach towards it.
And that there are various potential options for approaching stablecoins and with experimentation, they need to enable a room for there to be a failure.
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She also commented on the opportunity that the SEC has a chance to capture digital currencies and the technology platforms where they can be traded under the broad rulemaking authority of the agency.
Although the US takes time with new rules and regulations to bring into effect. And there has been nothing particular about the stablecoin rule, but there are chances for the elevation of the process following the meltdown with UST.
In the US, various authorities have always had mixed reactions to digital assets. And skepticisms have always hovered around the asset class. Some see great drawbacks with cryptocurrencies but then there are also some who look at them with high potential. Amid all this, it is to look forward to what stand the SEC would take with the stablecoins.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
