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Report: Stable coins are likely to be monitored by the SEC

Recent reports suggest that in the near future, US officials may hand over control of the Stables to the US Securities and Exchange Commission. The commission’s new policies could affect the performance of stable digital currencies such as Tetra.

to the Report Crypto Briefing, Bloomberg recently published a report indicating that the US Securities and Exchange Commission may continue to be responsible for overseeing stable coins.

According to a Bloomberg report, the US Treasury Department and other government agencies will soon release a report giving new powers to the US Securities and Exchange Commission in relation to stable coins.

The policies of the Exchange Commission are likely to affect the performance of centralized stable currencies such as Tetra, USDC, BUSD, TrueUSD and Pax Dollar in the future.

These rules are similar to those currently in place for bank deposits, which require companies to seek permits. Some stable coin companies, such as Circle, which want to become commercial banks in the future, have supported this approach.

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The US Securities and Exchange Commission has so far focused on overseeing projects in which tokens were sold to customers with the promise of paying interest. The commission focused specifically on companies that planned the initial public offering of digital currencies (ICOs) or similar sales. These assets are commonly referred to as investment contracts and are subject to Howey Test rules.

At first glance, the scope of the US Securities and Exchange Commission does not seem to have anything to do with stable coins; Digital currencies that are designed to protect traders from market fluctuations and are not practical in investing for profit.

Gary Gensler, chairman of the US Securities and Exchange Commission, said the organization’s main goal is to monitor all tokens used in investing activities, and as a result, stable coins, although not inherently risky to invest, fall into this category. Gencler has previously compared stable coins to “casino chips” and said they were both an easy way to make high-risk investments.

In addition, stable coins are at risk of falling prices. Although the value of any of the major stable coins on the market has not fallen so far, their price has fluctuated regularly on a regular basis.

Recent discussions over Facebook’s new Teter and StableCoin, Diem, may have given the US government new powers over the stock exchange commission.


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