According to Bloomberg, the US regulatory bodies have agreed that the SEC will lead the US stablecoin regulation and enforcement. This report also clarified the regulatory jurisdiction of the Treasury Department & CFTC regarding stable tokens.
The report was put forward today, on Oct. 26, by Bloomberg. It cited anonymous sources who are familiar with this. They reported that SEC agreed with other US agencies to propose legislation and govern the US stablecoin industry.
Furthermore, it mentioned that SEC’s newfound authority over stablecoin sector will formally announce in the upcoming stablecoin report by Treasury Department, scheduled for this week. It will also clarify the regulatory jurisdiction Treasury Department and Commodity Futures Trading Commission (CFTC) regarding stable tokens.
According to the Bloomberg sources, SEC chair Gensler is pushing for a further expansion in the agency’s regulatory domain for stablecoins.
Gensler reportedly desired to clarify SEC’s power to oversee stable-coin based investment transactions. He also allowed the commission to follow enforcement actions against issuers.
Meanwhile, the stablecoin market has witnessed significant growth this year. Not to forget the market capitalization of leading stablecoin issuer Tether (USDT) has topped the charts this year with $69.5 billion. Its market cap is growing by 229% since the start of 2021 and it doesn’t seem to stop anytime soon.
Second-ranked USD coin also witnessed swift growth with its market cap growing 706% year-to-date. It is now at $32.52 billion at the time of writing.
