Commissioner Hester Peirce highlights the importance of Congress in shaping stablecoin regulations

02/23/2023 08:11 • Blockchain Buzz • 148 views

It is reported that Hester Peirce, the commissioner of the US SEC, said on social media that he received many questions about the stable currency and the SEC, which are of course facts and circumstances, but the SEC should follow the opinions of the Congress, which is actively considering this issue. At the same time, we and other regulators can hold open round tables. Compulsory measures are not the way of making rules.

US SEC Commissioner: Congress is actively considering the issue of stabilizing the currency

Interpret the above information:

The rise of stablecoins has been a topic of interest for many investors and regulators alike. In response to the growing interest, Hester Peirce, a commissioner of the US Securities and Exchange Commission (SEC), shared via social media that she has received numerous questions regarding stablecoins and the SEC. Peirce made it clear that while the SEC acknowledges the impact of stablecoins, the ultimate authority in shaping regulatory policies lies with Congress.

She stated that the opinions of the Congress must be taken into account and that the SEC should wait for Congress to take action before creating any new rules or regulations related to stablecoins. She also emphasized that regulators should hold open round-table discussions instead of engaging in compulsory measures. Peirce believes that collaborative discussions amongst regulators and market participants can foster effective policymaking.

The Commissioner’s stance on regulatory oversight of stablecoins reflects the ongoing debate about the appropriate authority to oversee the digital asset class. The SEC has previously stated that certain stablecoins may qualify as securities and fall under their jurisdiction. However, many experts argue that stablecoins should be regulated as currencies and fall under the jurisdiction of the Treasury Department.

Peirce’s call for collaboration between regulators and Congress reinforces the idea that effective regulatory policies require input from both parties. Regulatory authorities may need to rely on new legislative frameworks and guidelines to set standards in the unpredictable world of digital assets.

In conclusion, Hester Peirce’s words highlight the importance of politics and regulation in shaping a new era of stablecoin deployment. Regulating digital assets has proven to be challenging, requiring a significant investment of time and resources. In this regard, the approach suggested by Peirce seems prudent, as it allows all relevant parties to have a voice and work towards a common goal of stability and security for the evolving digital asset market.

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