SEC Commissioner Hester Pierce wants regulator to defer stablecoin regulation to Congress

The United States Securities and Exchange Commission’s (SEC) Commissioner Hester Peirce urged the fiscal regulator to defer to the US Congress successful its stablecoin regularisation drive.

In a Feb. 22 tweet, Pierce pointed retired that Congress was “actively considering the issue,” adding that the SEC and different fiscal regulators could clasp nationalist roundtables pending results from the legislators.

Stablecoins person generated accrued scrutiny from regulators worldwide pursuing Terra’s UST illness successful 2022. The regulators person pointed retired however this plus people could interaction the broader fiscal economy.

SEC targeting stablecoins

The fiscal regulator had issued a wells notice to stablecoin issuer Paxos connected Feb. 13 that its Binance USD (BUSD) stablecoin was an unregistered security.

Another stablecoin issuer, Circle, denied rumors that the fiscal regulator had issued it a wells announcement astir its USD Coin (USDC) stablecoin.

Besides that, the SEC labeled Terra’s algorithmic stablecoin UST information successful its suit against Terraform Labs and its founder, Do Kwon.

Wall Street Journal reported connected Feb. 22 that the fiscal regulator was investigating whether stablecoins are products issued successful usurpation of investor-protection laws.

Crypto lawyers react

Delphi Labs’ wide counsel Gabriel Shapiro said the SEC could reason that stablecoins are securities due to the fact that the:

“Integration, promotion, marketing, commercialized deals etc gathering the stablecoin ecosystems are “efforts of others” that are “reasonably expected” and tin pb to profits successful transportation with the stables.”

He added:

“Stable[coins] mightiness adjacent walk the Howey trial (nvm different types of securities tests similar Reves), contempt them being ‘stable’.”

Another lawyer Mike Selig said the SEC’s characterization of Terra’s algorithmic stablecoin UST arsenic information shows that “nearly thing tin beryllium a security.”

Meanwhile, crypto speech Coinbase emphatically stated that “stablecoins are not securities.”

Over the past year, US SEC has accrued its regulatory scrutiny of the crypto manufacture pursuing the capitulation of respective crypto firms and fraud perpetrated successful the space.

The station SEC Commissioner Hester Pierce wants regulator to defer stablecoin regularisation to Congress appeared archetypal connected CryptoSlate.