The U.S. Securities and Exchange Commission (SEC) stands strongly for crypto regulations. Its chairman Gary Gansler today attributed this stand to the belief that stablecoins are like teenagers.
Gary Gansler’s comments were at an interview undertaken in the Securities Industry and Financial Markets Association’s annual meeting.
According to Gansler, Commodity Futures Trading Commission or SEC regulates the stablecoins and crypto industry with the intention of investor protection. The said industries are booming because of demand from investors. SEC chairman Gary Gansler adds that without an investor protection framework, there would not be efficiency in competitions or resiliency.
President Joe Biden’s administration is promising to be very stringent on cryptocurrency. On Monday, the President’s Working Group on Financial markets issued recommendations on regulating stablecoins.
According to the recommendations, stablecoins should be issued, insured, and regulated by banks regulated by the U.S. The regulations are close to Gary Gansler’s comments in September that stablecoins could be taken as security and consequently be subject to regulations by SEC.
Stablecoins are Like A Teenager, Crypto Won’t Reach Adulthood: Gary Gensler
Gary Gensler’s interview on the Security Industry and Financial Markets Association comes a day after Treasury issued a report on stablecoins. According to the report, a consistent and comprehensive regulatory framework is mandatory for transparency and ensuring stablecoins operate in standard times and stressed markets.
SEC’s Gary Gensler believes stablecoins are like a teenager. He continues that cryptocurrency would not reach adulthood without the adulty hand of regulatory oversight such as money laundering regulations and tax compliance.
From Poker Chips at A Casino to Teenagers
SEC chairman Gary Gansler seems to be a fan of metaphors when it comes to stablecoins. Before they were teenagers, Gansler compared stablecoins to chips at a casino.
Speaking to the House Committee on Financial Services, Gansler explained that the $125 billion of stablecoins at the time were like poker chips at a casino. According to Gary Gansler’s comments, if the stablecoins continued to grow, they would come with systemic wide risks.
As predicted, stablecoins have indeed grown. The current market cap of, the largest stablecoins issuer is way over $127 billion. The growth must have transformed the industry into full-grown teenagers if we are thinking like SEC’s Gary Gansler.
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