The US Treasury Gives the SEC the Green Light to Regulate Stablecoins

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Following the urgent financial regulators meeting called by the US Treasury Secretary Janet Yellen regarding the rising prominence of stablecoins, it’s as if a concrete plan to promptly regulate the booming asset class is now to be set in motion.

According to Bloomberg, who cited various anonymous sources, US Securities and Exchange Commission (SEC) Chairman Gary Gensler urged Yellen and other President’s Working Group on Financial Markets members to grant his agency the regulating power over stablecoins. The US Treasury obliged and is now reportedly set to give the SEC the authority to impose policies and enforce guidelines over stablecoins, such as Tether and USDC.

Bloomberg also noted that the SEC would be working alongside the Commodity Futures Trading Commission (CFTC) on this new venture. The specifics on the authority of the SEC over stablecoins will reportedly be outlined by the US Treasury later this week.

Gensler, who has long believed that stablecoins could enable individuals to bypass several public policies, seemingly feels particularly ecstatic about this new development. He states that he already has plans to expand regulations over stablecoins and DeFi since his official appointment as the SEC Chair last April.

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