Commissioner Hester Peirce — also known as the United States Securities and Exchange Commission’s (SEC) “crypto mom” — has backed a regulatory framework for stablecoins that allows “room for there to be failure.”
Speaking at an online panel on Thursday hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF), Peirce, who has long been an advocate for crypto, was asked to shed light on the actions being taken by U.S. regulatory bodies in regard to cryptocurrency.
“One place we might see some movement is around stablecoins,” Peirce answered, “that’s an area that has gotten a lot of attention this week:”
“It’s been one area within crypto that’s really had quite a moment and there’s a lot of stablecoin use and therefore people are thinking down the road, if this gets even bigger do we want to have some kind of regulatory framework?”
Peirce said she’s urged the SEC to use its regulatory powers to provide exemptions to particular technologies which she says would allow for important experimentation:
“We need to allow room for there to be failure because that obviously is part of trying new things and our framework really does allow for that kind of trial and error. I hope that we will use it for that purpose.”
The depegging of the algorithmic USD stablecoin TerraUSD (UST) early this week was mentioned by officials in the U.S. Capital with United States Secretary of the Treasury Janet Yellen, saying at a Senate hearing on Tuesday that a “consistent federal framework” on stablecoins needs to be