According to Gary Gensler, such digital coins and decentralized lending platforms “challenge established business models.”
The head of the US Securities and Exchange Commission (SEC) Gary Gensler told The Washington Post that stablecoins work like poker chips in casinos.
Gensler argues that private forms of money are short-lived, and the cryptocurrency industry is reminiscent of the Wild West. Last week, Gensler already compared the crypto market to the Wild West.
“There are many casinos in the Wild West, and poker chips are stablecoins on the casino tables,” Gensler said.
The SEC chief added that stablecoins and decentralized lending platforms are challenging established business models.
On September 17, it became known that the US Treasury Department is developing recommendations for issuers of stablecoins, which will have to guarantee clients the opportunity to withdraw money from stable digital coins.
The US authorities could introduce stricter rules for regulating stablecoins if the Financial Stability Oversight Board identifies economic threats posed by them.
A stablecoin is a digital coin whose value is tied to a specific physical asset.
The first such coin to be pegged to a currency, Tether’s USDT, was launched in 2015.
It is pegged to the value of the US dollar in a 1: 1 ratio.
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