SEC official Hester Peirce, known as “Crypto Mom,” has called for regulation of stablecoins in the wake of the UST collapse.
Peirce said in a statement that stablecoin regulations could soon be on the way.
Peirce said that the collapse of TerraUSD has attracted a lot of attention, noting that a move from the regulator for the stablecoin may come.
Stablecoin Regulation
As bureaucracy in the US moves extremely slowly, nothing clear about stablecoin regulations has emerged either. However, the major collapse of the UST could cause regulation to be accelerated.
SEC Chairman Gary Gensler sees most crypto assets as securities, so it seems highly likely that regulations in the crypto industry will be against the industry. Gensler believes stablecoins and cryptocurrencies also threaten the banking industry.
US Treasury Secretary Janet Yellen also stated that the turmoil brought about the necessity of regulations.
Hester Peirce, proposing a “trial and error” approach to stablecoin regulations, said:
“There are different options and experiments to approach stablecoins. We also need to make room for failure on stablecoins”
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