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In accordance with a Bloomberg report shared on October 26, citing anonymous sources, the SEC has recently reached an agreement with the other agencies of the United States to regulate Stablecoins. The regulatory bodies of the United States have come to an agreement that the Securities and Exchange Commission of the US will be leading the efforts to regulate the sector dedicated to stablecoin.
United States Regulatory Agrees that SEC will Lead Efforts to Regulate Stablecoin
According to the sources cited by Bloomberg, the recently found significant authority of the SEC over the sector will be formally announced in the forthcoming stablecoin report of the Treasury Department that is all set to be published this week.
It should be noted that the report will be clarifying the regulatory jurisdiction of the Commodity Futures Trading Commission (CFTC) and Treasury Department with regard to stable tokens.
As per the report, it was announced during a meeting of The President’s Working Group for Financial Markets (PWG) in the month of July, with the PWG stating its intention to explore the creation of a new type of banking charter for stablecoin issuers among the regulatory measures.
Gary Gensler Calls on Congress to Assist the CFTC
In addition to this, it should be noted that last month, Gary Gensler, the chairperson of the Securities and Exchange Commission of the United States called on Congress to assist the SEC and CFTC in regulating stablecoins.
Well, there is no denying the fact that the stablecoin market has witnessed significant growth in the year 2021, and the market cap of Tether, the leader of the stablecoin market, has clearly exploded this year, with its market capitalization growing by around 229% since the beginning of this year to sit at the mark of $69.5 billion.
USDC, the second in line has also seen a notable surge in its capitalization as it soared to 706% to touch the $32.52 billion mark.