{"id":446265,"date":"2022-05-13T08:21:22","date_gmt":"2022-05-13T05:21:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/secs-hester-peirce-says-new-stablecoin-regs-need-to-allow-room-for-failure\/"},"modified":"2022-05-13T08:21:22","modified_gmt":"2022-05-13T05:21:22","slug":"secs-hester-peirce-says-new-stablecoin-regs-need-to-allow-room-for-failure","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/secs-hester-peirce-says-new-stablecoin-regs-need-to-allow-room-for-failure\/","title":{"rendered":"# SEC&#8217;s Hester Peirce says new stablecoin regs need to allow room for failure"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a242e5745dbc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a242e5745dbc\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/secs-hester-peirce-says-new-stablecoin-regs-need-to-allow-room-for-failure\/#%E2%80%9D_SECs_Hester_Peirce_says_new_stablecoin_regs_need_to_allow_room_for_failure_%E2%80%9C\" >&#8221; SEC&#8217;s Hester Peirce says new stablecoin regs need to allow room for failure &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SECs_Hester_Peirce_says_new_stablecoin_regs_need_to_allow_room_for_failure_%E2%80%9C\"><\/span>&#8221; SEC&#8217;s Hester Peirce says new stablecoin regs need to allow room for failure &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvYWRiNjFlZWUtMjRjOC00NjRlLWJkZjQtYjAyODM2MDE1OWZkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Commissioner Hester Peirce \u2014 also known as the Securities and Exchange Commission\u2019s (SECs) \u201ccrypto mom\u201d \u2014 has backed a regulatory framework for stablecoins that allows &#8220;room for there to be failure.&#8221;<\/p>\n<p>Speaking at an online <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=jXIssRGbojk\">panel<\/a> on May 12 hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF) Peirce, who has long been an advocate for crypto, was asked to shed light on the actions being taken by U.S. regulatory bodies in regard to cryptocurrency.<\/p>\n<p>\u201cOne place we might see some movement is around stablecoins,\u201d Peirce answered, \u201cthat&#8217;s an area that has gotten a lot of attention this week.&#8221;<\/p>\n<blockquote><p>\u201cIt\u2019s been one area within crypto that&#8217;s really had quite a moment and there&#8217;s a lot of stablecoin use and therefore people are thinking down the road, if this gets even bigger do we want to have some kind of regulatory framework?\u201d<\/p><\/blockquote>\n<p>Peirce said she\u2019s urged the SEC to use its regulatory powers to provide exemptions to particular technologies which she says would allow for important experimentation.<\/p>\n<blockquote><p>\u201cWe need to allow room for there to be failure because that obviously is part of trying new things and our framework really does allow for that kind of trial and error. I hope that we will use it for that purpose.\u201d<\/p><\/blockquote>\n<p>The depegging of the algorithmic USD stablecoin TerraUSD (UST) early this week was mentioned by officials in the U.S. Capital with United States Secretary of the Treasury Janet Yellen saying at a Senate hearing on May 10 that a &#8220;consistent federal framework\u201d on stablecoins needs to be developed in light of the situation.<\/p>\n<p>Two days later on Thursday May 12 Yellen said that stablecoins de-pegging from the US dollar were not a threat to the country\u2019s financial stability as they&#8217;re not yet at a scale where a price drop would present a risk. Currently the market capitalization of the top five USD stablecoins is over $154 billion, or around 11% of the $1.36 trillion total cryptocurrency market cap according to figures from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/\">CoinGecko<\/a>.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Chairs from the SEC and CFTC talk crypto regulation at ISDA meeting<\/em><\/strong><\/p>\n<p>Speaking further on the regulatory environment for stablecoins Peirce said that it\u2019s important for regulators to remember that the term covers a variety of assets:<\/p>\n<blockquote><p>\u201cYou might say \u2018stablecoin\u2019 and one stablecoin might look nothing like another stablecoin. I think it\u2019s very important to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach all the conversations in crypto with an understanding that there\u2019s a lot of variation which makes it difficult to craft a regulatory framework.\u201d<\/p><\/blockquote>\n<p>She added that the regulations \u201ctry to cover what exists today\u201d but also \u201cwhat is going to exist tomorrow\u2026 and that&#8217;s not easy to do.\u201d<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-s-hester-peirce-says-new-stablecoin-regs-need-to-allow-room-for-failure\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; SEC&#8217;s Hester Peirce says new stablecoin regs need to allow room for failure &#8220; Commissioner Hester Peirce \u2014 also known as the Securities and Exchange Commission\u2019s (SECs) \u201ccrypto mom\u201d \u2014 has backed a regulatory framework for stablecoins that allows &#8220;room for there to be failure.&#8221; Speaking at an online panel on May 12 hosted&#8230;<\/p>\n","protected":false},"author":1,"featured_media":446266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvYWRiNjFlZWUtMjRjOC00NjRlLWJkZjQtYjAyODM2MDE1OWZkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74898,75493,122378,70934,67874,2199],"class_list":["post-446265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-sec","tag-stablecoin","tag-terra","tag-regulation","tag-united-states","tag-washington"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/446265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=446265"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/446265\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/446266"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=446265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=446265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=446265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}