US Securities and Exchange Commission (SEC) commissioner Hester Peirce has mentioned that the stablecoin market has attracted numerous consideration this previous week and that the sector could possibly be trying at “stricter” laws.
The prime SEC official mentioned this in feedback made throughout a web-based dialogue organised by the Official Monetary and Financial Institutions Forum (OMFIF). This is an impartial suppose tank on central banking and financial coverage headquartered in London, UK.
A information report by Reuters quotes the SEC official as saying that one place prone to “see some movement is around stablecoins.” She added that this follows occasions this week which have helped shine a highlight on the sector.
Hester’s feedback got here at OMFIF’s annual Digital Monetary Institute symposium, whose panel additionally included Algorand CEO Steve Kokinos and former CFTC chair Timothy Massad.
UST depeg and LUNA’s collapse
Indeed, this week has seen the cryptocurrency market rocked by the crushing lack of greenback parity by the stablecoin TerraUSD (USD). The UST token fell as little as $0.25, shedding its peg to the greenback by 75% amid rumours of a coordinated assault.
Apart from that, the algorithmic stablecoin’s depegging has despatched the Terra (LUNA) coin to close zero (at the moment at $0.01), and a cascade of sell-off stress has additionally pushed Bitcoin worth to lows final seen in January 2021.
And with the stablecoin turmoil additionally seeing Tether (USDT) lose its peg earlier on Thursday, a harder regulatory framework could possibly be ‘closer’ certainly.