The Securities and Exchange Commission (SEC) and the Futures Trading Commission (CFTC) will receive new powers to work with stable digital coins
The US President’s Financial Markets Working Group (PWG) this week will provide guidance on regulating the circulation of stablecoins in the country, Bloomberg reported, citing sources.
The PWG includes representatives from the Treasury, the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), the Federal Reserve, and the Federal Deposit Insurance Corporation.
According to the agency’s sources, the SEC will receive the authority to regulate stablecoins. Gary Gensler, the head of the regulator, instructed on expanding the powers of the regulator.
The PWG also proposed to Congress to approve a law that introduces measures to regulate stablecoins similar to those applied to bank deposits. The Futures Trading Commission will also receive certain powers over stablecoins.
In late September, the SEC chief compared stablecoins to poker chips. At the time, Gensler argued that private forms of money were short-lived and that the cryptocurrency industry was like the Wild West.
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.
