The Securities and Exchange Commission (SEC) has been given authority to lead the United States’ attempts to regulate the stablecoins sector. As a result, the bitcoin sector will be regulated by the regulatory authorities. According to unnamed sources, the agency reached an agreement with other American companies. They will now propose legislation and oversee the management of stablecoins.
The function of the Treasury Department in stablecoin will be revealed in the Treasury Board report. The research will assist you in comprehending the complicated regulatory landscape around stable tokens. Furthermore, it establishes how government authorities like the CFTC and Treasury deal with stable tokens.
Stablecoins will be included in the banking charter
The fact that banking laws are evolving is no secret. What does this mean for your bank, however? In July’s meeting with the Presidential Working Group on Financial Markets, the Treasury released its findings (PWG). The PWG then suggested that new charters be created to allow stablecoin issuers.
The PWG is an exclusive group of officials from several government institutions. Janet Yellen, Gary Gensler, Jerome Powell, and Rostin Behnam are among the members.
Stablecoins are a very young and uncontrolled market. However, Gensler wants to know what powers the agency has in controlling it.
The study will urge Congress to enact more stringent investor protection rules. In addition, there are laws in the stablecoin department that deal with bank deposits.
Gensler has pushed Congress to help the SEC and CFTC regulate stablecoins. These dollar-denominated assets, he believes, are akin to “casino poker chips.”
Since the start of the year, there has been a noticeable increase in the stablecoin market. Tether (USDT), for example, is the major supplier of this currency and has seen significant growth. Its market capitalization increased by 229 percent to $69 billion.
This year, an unexpected second-placed USD coin has seen a stratospheric increase as well. Its market capitalization has increased by 706 percent to $32.52 billion.
Concerns about regulations
As the crypto industry grows, stablecoins are becoming more popular. They function because they are backed by real-world assets, like US dollars or Euros. Stable coins also have a variable value, ensuring that your investment is secure.
Authorities have singled out Tether for making deceptive statements about currency reserves. It recently reached an agreement with the Attorney General of New York over false charges. It turns out that this isn’t a one-off occurrence. In addition, the Commodity Futures Trading Commission fined them $41 million for making fraudulent representations.