Market

US SEC assumes control of crypto and stablecoin regulations in the absence of new laws

Array
The SEC has filled the crypto regulatory gaps

As lawmakers in the US grapple with legislation to create new rules around digital assets, the Securities and Exchange Commission (SEC) has filled the regulatory gaps that have been identified by President Joe Biden’s administration.

Gary Gensler, SEC Chair, reiterated to reporters last week that he doesn’t see the need for new laws to regulate the space, though senior US regulators including Treasury Secretary Janet Yellen have called for new laws to govern digital assets.

The lack of new laws has enabled the SEC to proactively regulate in new areas that it had not previously focused on, including stablecoins and firms that combine traditionally separate financial activities.

However, the SEC has been accused of driving the Treasury’s reluctance over stablecoin legislation through constant objections and last-minute revision requests.

Despite the lack of new legislation, the SEC has taken action against Beaxy due to the way the platform combined several traditionally separate financial activities under one company, another area where the FSOC recommended new laws to create guardrails.

Tags

Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.