Rules defining the use of cryptocurrencies, including stablecoins, should be as clear as possible, and that is something the U.S. Congress could help develop, according to the U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce.
“Crypto is an area where I’ve been calling for us to take steps to regulate the market, to put out clear rules about what people need to do,” she said in an interview with Bloomberg on Thursday.
According to “Crypto Mom,” the nickname the crypto community has given Peirce for her strong support for the industry, stablecoins may or may not be within the SEC’s jurisdiction, “but facts and circumstances matter, but it’s something that the Congress has been looking at.”
“Congress may well weigh in, and I think that the events of last week are likely to encourage them to work more quickly on it,” said Peirce.
By mentioning last week’s events, Peirce referred to the recent crash in the crypto market, partly caused by TerraUSD (UST) algorithmic stablecoin slipping from its peg to the U.S. dollar.
For the crypto industry, which shed more than $300 billion in the past ten days, the consequences of the Terra collapse are likely to have a long-lasting effect, especially when it comes to investor confidence.
When asked what she thinks about the jurisdictional division between the SEC and the Commodity Futures Trading Commission (CFTC), which oversees the derivatives market, Peirce said that some of those aspects are indeed unclear, and “that’s why Congressional input would be quite helpful.”