According to Peirce, what happened with the Terra coins represents the urge for stronger regulation aimed at stable coins. Still, there is also a need to guarantee an equilibrium that allows more improvements and compliance with essential policies.
The US Securities and Exchange Commission commissioner, popularly known as Crypto Mom, Hester Peirce, recently highlighted that regulation on stable coins could arrive sooner than expected, mainly due to the recent Crashdown in prices.
A Regulation for Stable Coins Would Arrive Soon
This event got revealed by Peirce during an interview held by the CNBC network, where the commissioner highlighted that the Crashdown of UST and LUNA represents the urgent need for a solid regulation on stable coins. She expects that this regulative procedure will not be harmful to the development of the crypto space in the short term.
As a representative of the SEC, Peirce has always warned participants in the crypto ecosystem to carry out their activities with great prudence. Given the impact that DeFi protocols caused at the time, the official alerted entities interested in releasing new proposals under this model to look for assistance from the regulator to become aware of the current situation and clarify whether said currencies comply with the definition of values.
A supportive Stance from Congress
Although the SEC and the Commodity Futures Trading Commission (CFTC) have the responsibility to serve as third parties in these situations, the representative said that Congress should play a more active role. Congress must bring enough light to said entities and allow them to carry out their actions in the most appropriate way possible.
Pierce commented in the interview that the SEC is already working hard and using the authority it has, but she thinks it would be better if Congress entered the fight and helped a bit more.
The Perfect Balance Between Improvements and Regulative Protocols
Finally, Peirce asked for a more balanced behavior in the regulations that might come soon since a balance must be the factor that allows improvements in a financial environment and guarantees compliance with specific policies for all the affected.
To achieve this goal, she explained that it is vital that both parties meet and communicate in good faith, which unfortunately has not been achieved precisely because of the predisposition of regulators regarding digital assets and the crypto space.
By: Jenson Nuñez
