Regulatory fear has gripped the Bitcoin and altcoin markets. The new rules may regulate stablecoin projects similar to bank deposits. cryptocoin.com We have compiled the details for you, let’s examine the subject together…
- A report from the US Treasury and other regulators could give the SEC new mandate over stablecoins.
- Under pending regulations, stablecoins may face some of the rules that bank deposits currently face.
- The SEC argues that stable altcoin projects carry risks despite their goal of maintaining a price fix.
According to a report published by Bloomberg today, the US SEC may soon gain authority over stablecoins.
The SEC wants to regulate these altcoin projects!
Sources from Bloomberg suggest that the US Treasury and other government bodies will soon release a report giving the Securities and Exchange Commission new mandate over stablecoins. This policy will likely apply to centrally issued stablecoins such as Tether’s USDT stablecoin and Circle’s USD Coin, as well as altcoin projects such as Binance USD, TrueUSD, and Pax Dollar.
Rules similar to those currently applied to bank deposits will require companies to obtain licenses. This approach has received support from stablecoin companies such as Circle, which plans to become a commercial bank in the future. Until now, the SEC has primarily focused on regulating cryptocurrency projects that sell tokens with the promise of returns, especially companies that run ICOs or similar sales. Such assets are typically considered investment contracts under the Howey Test.
Why does the SEC want authority? What could be in the market?
At first glance, the SEC’s view does not seem to apply to stablecoins, which are designed to prevent price fluctuations and therefore not suitable for investors seeking high returns. However, SEC Chairman Gary Gensler said that the regulator aims to oversee all altcoin projects that are in the stablecoin category, regardless of their inherent risks. Gary Gensler has previously compared stablecoins to “poker chips”. With this statement, he implied that both are easy transitions to risky investments.
Also, stablecoins carry risk due to the possibility of falling prices. While no major stablecoin has experienced a complete collapse in value, minor price fluctuations occur regularly. The ongoing discussions around Tether and Facebook’s upcoming Diem stablecoin have led the US government to grant new powers to the SEC as well, according to experts.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.