Under the watchful eye of stablecoin issuers, certain exemptions must be maintained to continue innovation. The commissioner explained SEC Hester Pierce.

“We need to leave room for failure, which is part of experimentation. Our rules allow it, and I hope this continues in the future,” he said. said.

Pierce explained that stablecoins can have a variety of qualities, making it difficult to develop a regulatory framework. The rules said “try to cover what exists today” but also “it will exist tomorrow”. […]And that’s not easy to do.”

On May 10, a Senate Banking Committee session discussed the separation of the UST rate from the US dollar and the collapse of the algorithmic stablecoin-related cryptocurrency LUNA. Treasury Secretary Janet Yellen highlighted the need for legislation to regulate stablecoins by the end of 2022.

Two days later, the official announced that the current scale of the project was not large enough to pose a serious threat.

Earlier, SEC chairman Gary Gensler and chairman fed Jerome Powell. The tightening of their regulation was supported by the head OCC Michael Hsu of the US Treasury.

Recall that Tether CTO Paolo Ardoino warned of the danger of algorithmic stablecoins to the market as their capitalization increases.