US Treasury Department
The US Treasury Department will give the SEC authority over stablecoins, the President’s Working Group on Financial Markets reported. Following the developments, we will discuss it further in our latest crypto news.
Earlier this year, questions surfaced about the growing importance of tether and the rest of the stablecoins in the crypto industry. Janet Yellen, US Treasury Secretary, met with financial regulators to develop a game plan for regulating these asset classes. It looks like the meeting took place because the U.S. Treasury Department will authorize the SEC to regulate stablecoins like USDC and Tether, and even the CFTC will have a role to play. The powers will be explained in a report that will be released earlier this week.
According to Bloomberg, SEC chairman Gary Gensler has lobbied Yellen and other members of the working group to give the country’s top securities regulator more authority in setting and enforcing stablecoin policies. In the drafting phase, the report calls on Congress to create a separate banking charter for stablecoin issuers whose digital currencies are backed by real assets. Given the political divisions, Gensler would like to make it clear that the SEC currently has the authority to monitor these tokens as they participate in transactions. He and Fed Chairman Jerome Powell have stated that centralized stablecoins are similar to and managed as money market funds, which the SEC would scrutinize them.
Tether is the world’s largest stablecoin, with a market capitalization of more than $ 70 billion, and after years of claiming that Tether was backed by $ 1 in the bank, the company had to revise all of its post-conflict statements . New NYAG investigation. According to reports, most of Tesla’s stock is in commercial papers, which allows the company to make a profit, but they can get riskier during times of financial crisis. USDC, on the other hand, is valued at more than $ 32 billion and about 60% of its holdings are in cash, with the remainder made up of certificates of deposit, commercial paper, corporate bonds, and government bonds. Gensler said he was ready to expand the rules on stablecoins and defi market that they have allowed since their appointment in April, and also said that expanding the asset class could make it easier for those trying to bypass public policy goals as well even endanger national security.
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