Regulators Want to Clamp Down on Stablecoins
Delay is dangerous, the regulators said. Stablecoins have not always been as securely backed as issuers claim. “A run occurring under strained market conditions may have the potential to amplify a shock to the economy and the financial system,” the report warned. The S.E.C., C.F.T.C. and other agencies have the power to police certain stablecoin issuers, but the report identified regulatory gaps that only legislators could address. If Congress does not act quickly, the Financial Stability Oversight Council, a body created after the 2008 financial crisis, could step in and designate stablecoins as a potential systemic risk, granting regulators new powers.
Some say legislation isn’t a speedy path to rein in crypto. Tyler Gellasch, a former S.E.C. lawyer who now leads the Healthy Markets Association, questioned whether Congress would take the necessary steps. “Given the incredible growth of the industry and its lobbying prowess, there’s no guarantee that new legislation will lead to more oversight, and frankly, it’s likely to lead to less,” he said. “This report is unquestionably the starting gun for the crypto lobbying games.”
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Speaking of crypto lobbying, Andreessen Horowitz is ramping it up.
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Singapore wants to become a global crypto hub: “We think the best approach is not to clamp down or ban these things,” its top banking regulator said.
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A cryptocurrency inspired by “Squid Game” soared, spectacularly, before the money vanished.
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Article source: https://www.nytimes.com/2021/11/02/business/dealbook/treasury-stablecoin-regulation.html