By Shelly Melancon (Switzerland)
As revealed by Bloomberg through its trusted sources, the US SEC and other financial regulators have decided that the SEC should supervise the policy and its enforcement concerning stablecoins.
An Inside Source Reveals Details
Bloomberg further reports that the treasury department will confirm this news in an official announcement when it releases a stablecoin industry report in the forthcoming week. This treasury department report will also reveal its role and the CFTC on matters affecting stablecoin tokens.
In July, a discussion between the PWG revealed that the treasury department would release a report on the future of stablecoin issuers and other regulatory policies. Members of the PWG include heads of all the financial regulators and Janet Yellen, the Secretary to the Treasury.
According to Bloomberg, Gensler remains at the forefront of ensuring that the SEC has sole jurisdiction over stablecoin matters, including enforcing stablecoin regulations. Part of the Treasury’s report will call Congress to order similar policies for supervisors of stablecoins’ bank deposits.
SEC Chief And Stablecoin Regulation
In September, the SEC chief appealed to Congress to help release policies for regulating stablecoins as he compared these stablecoins to poker chips. An earlier report by Bloomberg revealed that the treasury department previously called on Congress to make it mandatory for stablecoin issuers to create new bank charters. Thus, crypto banks can start handling these coins as deposits.
Also read:But the SEC chief quickly requested an alteration by emphasizing that the SEC is the approved authority over such matters. This year has seen a remarkable rise in the stablecoin space. For perspective, USDT’s market cap surged by almost 230% since the beginning of the year and is now almost $70m.
Coingecko data revealed that the stablecoin market is currently valued at almost $135B. USDT’s 70.7B tokens comprise 52.3% of that amount. Over 50% of total USDT tokens are locked in the TRON network, while the remaining amounts are locked on the Ethereum network.
The Second-largest stablecoin (USDC) has also experienced an astonishing rise. The USDC market cap is about $33.56B, indicating an increase of 707% YTD. The third-largest stablecoin (BUSD) has risen by 1,250% this year, and its market cap is a little below $13B. It remains unclear how the stablecoins will react to this report when it is eventually released.
SEC Battles With Terraform Labs CEO
During his attendance at the Messari Mainnet conference, the SEC served Terraform Labs CEO, Do Kwon, a subpoena. Now, Kwon is suing the SEC because the regulator doesn’t have the right to serve him such notice at his location.
In May, the SEC and Kwon had a 5-hour discussion on the terraform labs’ relationship with the mirror protocol. However, contrary to expectations, the SEC subpoenaed Kwon last month despite still conversing with the CEO. Despite Kwon’s legal battle with the SEC, various metrics indicate that LUNA’s price action remains bullish. Terraform’s native token (LUNA) surged by more than 24% in the last seven days. They forecast that LUNA might reach $50 before the year ends.
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