{"id":26761,"date":"2022-05-13T02:05:40","date_gmt":"2022-05-13T06:05:40","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=26761"},"modified":"2022-05-13T02:05:47","modified_gmt":"2022-05-13T06:05:47","slug":"secs-peirce-says-stablecoins-regulations-must-embrace-trial-and-error","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/secs-peirce-says-stablecoins-regulations-must-embrace-trial-and-error\/","title":{"rendered":"SEC’s Peirce Says Stablecoins Regulations Must Embrace Trial And Error"},"content":{"rendered":"\n
Hester Peirce has stated that there must be room for trial-and-error and failure in the stablecoins regulatory movement.<\/h5>\n\n\n\n
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Stablecoins regulations <\/figcaption><\/figure>\n\n\n\n

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Commissioner Hester Peirce, also known as the Securities and Exchange Commission's (SEC<\/a>) “crypto mom,” has endorsed a regulatory framework for stablecoins that allows for “failure.”<\/p>\n\n\n\n

On May 12, Peirce, who has long been an advocate for cryptocurrency, was asked to speak at an online panel\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF).<\/p>\n\n\n\n

“One area where we might see some movement is around stablecoins,” Peirce responded, “that's gotten a lot of attention this week.”<\/p>\n\n\n\n

\u201cIt\u2019s been one area within crypto that's had quite a moment and there's a lot of stablecoin use and therefore people are thinking down the road if this gets even bigger do we want to have some kind of regulatory framework?\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

Peirce stated that she has urged the SEC to use its regulatory authority to grant exemptions to specific technologies, which she believes would allow for important experimentation.<\/p>\n\n\n\n

“We need to allow room for there to be a failure because that is part of trying new things and our framework does allow for that kind of trial and error. I hope that we will use it for that purpose.\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

The debugging of the algorithmic USD stablecoin TerraUSD (UST<\/a>) earlier this week was mentioned by US officials, with US Secretary of the Treasury Janet Yellen saying at a Senate hearing on May 10 that a “consistent federal framework” on stablecoins is needed in light of the situation.<\/p>\n\n\n\n

Two days later, on Thursday, May 12, Yellen stated that stablecoins decoupled from the US dollar posed no threat to the country's financial stability because they are not yet at a scale where a price drop would pose a risk. According to CoinGecko data, the market capitalization of the top five USD stablecoins is currently more than $154 billion, or roughly 11% of the total cryptocurrency market cap of $1.36 trillion.<\/p>\n\n\n\n

Speaking further on the regulatory environment for stablecoins, Peirce stated that regulators should keep in mind that the term encompasses a wide range of assets:<\/p>\n\n\n\n

“You might say \u2018stablecoin\u2019 and one stablecoin might look nothing like another stablecoin. I think it\u2019s very important to approach all the conversations in crypto with an understanding that there\u2019s a lot of variation which makes it difficult to craft a regulatory framework.\u201d<\/p><\/blockquote><\/figure>\n","protected":false},"excerpt":{"rendered":"

Hester Peirce has stated that there must be room for trial-and-error and failure in the stablecoins regulatory movement. Commissioner Hester Peirce, also known as the Securities and Exchange Commission’s (SEC) “crypto mom,” has endorsed a regulatory framework for stablecoins that allows for “failure.” On May 12, Peirce, who has long been an advocate for cryptocurrency, […]<\/p>\n","protected":false},"author":33,"featured_media":26762,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-26761","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/digital-market-regulation-concept-crypto-stablecoin-congress_iStock-968890418.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/26761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=26761"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/26761\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/26762"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=26761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=26761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=26761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}