The regulatory bodies in the United States of America have reportedly given a green signal to the SEC to lead the efforts of the country to emulate and enforce the stablecoin sector.
Will SEC monitor the stablecoin sector?
According to a recent report that cited unnamed sources close to the issue, the Security Exchange Commission of the country agreed with the other agencies of America to monitor the stablecoin industry.
The same anonymous tipsters also mentioned that the SEC has found “significant authority” over this space. Its newfound role will be formally shared in the forthcoming stablecoin report of the Treasury Department. The report is likely to release this week.
Also, the report will clarify the Treasury Department and the Commodity Futures Trading Commission’s regulatory jurisdiction concerning stable coins.
It was in July this year when the report of the Treasury was declared at a meeting of the PWG. The PWG stated its intention to create a fresh kind of banking charter for the issuers of stablecoin at the time.
The President’s Working Group includes members from top American regulatory agencies such as SEC Chair, Treasury Secretary, acting CFTC head, and Federal Reserve Chair.
Multiple sources insist that SEC Chair Gary Gensler has been insisting on the expansion of the commission’s regulatory authority over stablecoins. It seems Gensler wants the commission should be allowed to continue with enforcing not steps against issuers.
The SEC Chair also wanted a clarification on what authorities the commission has to supervise the investment transactions related to stablecoin. The report may direct Congress to enforce similar regulations to those supervising bank deposits for the stablecoin space.