SEC Commissioner: Crypto Regulations Are Likely To Happen ‘Faster’ Following Terra (LUNA) and TerraUSD (UST) Fall
May 27, 2022A key official at the US Securities and Exchange Commission (SEC) predicts that stablecoin regulation will likely happen faster following the Terra (LUNA) and TerraUSD (UST) falls.
SEC Commissioner Hester Peirce expressed her thoughts at the DC Blockchain Summit in Washington, DC. She emphasized that she hopes any future regulation doesn’t choke the whole crypto market after the collapse of the TerraUSD (UST) algorithmic stablecoin and Terra (LUNA).
Hester Peirce said,
“I think it is likely that we’re going to have regulation happen faster because of the events of recent weeks. But stablecoin legislation was already on the docket, and so it’s possible that will move forward more quickly.”
In addition, she added, “I think what we have to make sure to do though is preserve the ability of people to experiment with different models and do so in a way that fits within regulatory guard rails.”
Aside from this, Peirce believes that Congress will establish recommendations for the SEC and the Commodity Futures Trading Commission on what roles the federal government should play in crypto regulation (CFTC).
“While the SEC is currently operating and exercising its jurisdiction, I believe it would be beneficial if Congress stepped in and said, ‘SEC, here’s the role we think you should be playing,’ and ‘CFTC, here’s the position for you.”
Furthermore, she added that there is more work to be done because traditional financial institutions want to get involved in crypto and need regulatory clarity from them.
Interestingly, Peirce says she would like to see a balance between innovation and regulation where both parties meet and communicate in good faith, adding that so far the government’s efforts to do so have been lacking.
