Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, spoke about cryptocurrencies at a conference at Georgetown University Law School today.
Gensler stated that stablecoins Tether and USDC are used to facilitate transactions between cryptocurrencies such as Bitcoin and Ethereum.
Reminding that some altcoins have the status of securities and therefore they are subject to the SEC, the president stated that there are products in the crypto money sector and exchanges that will require review by the Federal Deposit Insurance Fund and the FED.
Speaking at a time when the Biden government was preparing a legal regulation on stablecoins, Gensler also warned investors.
“Most of the stablecoins are not actually owned by the public. These are the platforms themselves. Investors only have a credit relationship with the stock market. This is something that regulators should consider and address for financial stability and investor protection.”
We have seen that there has been a debate over stablecoins in the USA in recent days and concerns that stablecoins may pose a risk to financial stability.
The Biden government is expected to release a report within weeks on the risks of stablecoins, action to be taken and investor protection.