Key Takeaways
- US regulatory bodies empower the SEC to oversee activities in the stable coin market.
- The Treasury Department will officially announce the SEC's authority over activities in the stable coin market this week.
- Chairman Gensler moves to expand SEC's authority to cover enforcement of action against stable coin issuers.
Cryptocurrency as we know it houses a lot of benefits to both individuals and corporate bodies. But if not properly checked could spell doom for the economy of a nation. And the US is not waiting for doom's day before taking a proactive approach to forestall any future threat that cryptocurrency activities may pose to the country's economy.
Recently, regulatory arms in the United states have taken definitive steps to oversee and initiate policies that will help check activities in the stable coin industry. They also decided that the SEC would be in charge of formulating legal frameworks to govern the activities of the stable coin market.
According to anonymous sources mentioned in Bloomberg yesterday's brief, the Treasury Department will issue a brief on stable coin later this week. It will formally outline the powers of the SEC over the stable coin industry. The brief will also map out the supervisory powers of the Treasury Department and the Commodity Futures Training Commission concerning stable coin.
Earlier this year, the US department responsible for promoting economic growth released a brief during the President's Working Group for Financial Markets session. The brief outlined their desire to develop a novel financial service for institutions in charge of stable coins and other supervisory measures.
Sources in touch with Bloomberg also gave hints on Gensler's move to expand the oversight function of SEC to accommodate the prosecution of proceedings involving institutions charged with issuing stable coins. In addition, the SEC's chairman is working to shed more light on the commission's jurisdiction regarding investment transactions involving stable coins.
Related post: US Government to Set New Regulations for Stable Coin Issuers
In August, the SEC's chairman reached out to Congress to support regulatory bodies in their bid to control the stable coin market. The brief is also anticipated to reach out to Congress to formulate policies that will govern the activities of institutions handling bank reserves on behalf of the stable coin market.
The stable coin market has grown exponentially since the inception of the year. The market cap for number one stable coin issuer Tether USDT has grown by 229% and is currently at $69.5 billion, while the second runner-up, USD Coin, has grown by 706% so far and is currently at $32.52 billion.
Do you think the US regulatory decisions over the stable coin industry are a welcome development?
