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The commissioner of the US Securities and Exchange Commission (SEC), Hester Peirce, said that the stablecoin market has attracted a lot of attention over the past week and that the sector could consider “stricter” regulations.
This was stated by the SEC’s top representative during an online discussion organized by the Official Monetary and Financial Institutions Forum (OMFIF). This is an independent think tank for central banking and economic policy, headquartered in London, United Kingdom.
A News Report of Reuters quotes the SEC official as saying that there will probably be “some movement” in the area of stablecoins. She added that this follows events this week that have helped put the sector in the spotlight.
Hester’s comments came at OMFIF’s annual Digital Monetary Institute symposium, whose panel also included Algorand CEO Steve Kokinos and former CFTC Chairman Timothy Massad.
UST Depeg and collapse of LUNA
In fact, the cryptocurrency market was shaken this week by the crushing loss of dollar parity by the stablecoin TerraUSD (USD). The UST token fell to $ 0.25 and lost its peg to the dollar by 75%, amid rumors of a coordinated attack.
Apart from that, the depegging of the algorithmic stablecoin has sent the Terra (LUNA) coin to near zero (currently at $0.01USD. A cascade of sell-off pressures has also pushed the Bitcoin price to lows last recorded in January 2021.
And since the stablecoin turmoil is also causing Tether (USDT) to lose its peg on Thursday, a stricter regulatory framework could actually be “closer”.
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