SEC likely to target stablecoins this week, report says

ComplianceX | Jack Kelly | Oct 26, 2021

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.

See:

A Regulated Stablecoin Means Having a Regulator

On the Brink Podcast: George Selgin of the Cato Institute on Stablecoins, Bitcoin and Free Banking

FCA Chair Charles Randall Discusses Crypto, Stablecoins and Digital Asset Regulation

More regulation coming: SEC Chairman signals stablecoins and other tokens could fall under its rules on security-based swaps

The report is expected to highlight the SEC’s powers, as Chairman Gary Gensler has been pushing for oversight and the ability to pursue enforcement action.

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.

Continue to the full article –> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Source: https://ncfacanada.org/sec-likely-to-target-stablecoins-this-week-report-says/