The SEC is likely to get the green light to target stablecoins this week, report says
SEChas secured authority over stablecoinregulation, Bloomberg reported on Monday.
- A highly-anticipated report laying out the SEC's powers will detail the government's role in stablecoin regulation.
- US agencies will urge Congress to pass legislation that states these coins should be regulated like bank deposits, Bloomberg said.
The Securities and Exchange Commission has won a debate among US agencies to propose legislation and oversee the $131 billion stablecoin market, Bloomberg reported on Monday.
The Wall Street watchdog's "significant authority" over tokens like tether will be spelt out in a report expected to be published this week, Bloomberg said, citing sources familiar with the matter.
Agencies including the Treasury will ask Congress to pass legislation stating coins should be regulated like bank deposits, one source said.
The report is expected to highlight the SEC's powers, as Chairman
It will clarify how the Biden administration will regulate the sector, with several agencies including the Commodity and Futures Trading Commission likely to have a role. These developments suggest the government will have clear and active authority over the stablecoin market, while waiting for longer-term plans to be enacted.
Prior versions of the report called on Congress to create a bank-like charter that would treat stablecoin issuers as if they are banks.
Gensler, who has compared stablecoins to poker chips at a casino, has been calling on lawmakers for a while to give the SEC more authority to regulate the industry.
There might be an upside to the SEC winning this battle. According to Jaret Seiberg, a DC-based financial services policy analyst at Cowen, the range of stablecoin issuers could widen under the SEC's watch, despite its tough stance on these digital assets.
But Tether, one of the largest stablecoin issuers with a $70 billion market cap, has been facing heat over whether it's truly backed by actual dollar reserves at all. In February, it reached a settlement to pay an $18.5 million fine to end a New York probe into reserves backing its coin. More recently, it was ordered by the CFTC to pay a $41 million fine for "untrue or misleading statements" about its US dollar reserves.
The President's Working Group of Financial
- The 10-year Treasury yield will drop to 3.5% by the end of next year as the massive bond rally will continue, UBS says
- Instagram's crisis highlights the bigger issues the entire ad industry is facing
- Exit polls predict BJP advantage in MP, Rajasthan, Congress win in Chhattisgarh, Telangana and tight contest in Mizoram
- Delhi airport: Flights diverted due to bad smog, bad weather
- Meta expanding child safety measures as scrutiny mounts
- IPL has given me confidence to remain calm under pressure: Rinku Singh
- GST collection surges to 8-month high in November
- Environmental Impact Assessments