The US Securities and Exchange Commission (SEC) may gain control over stablecoins
The U.S. SEC could soon gain authority over stablecoins, according to a report published by Bloomberg today.
According to Bloomberg’s sources, the US Treasury and other government entities are working on a report that will give the SEC new authority over stablecoins.
The policy is likely to apply to centrally issued stablecoins like Tether’s USDT, Circle’s USD Coin, Binance USD, TrueUSD, and the Pax Dollar.
Companies would be required to obtain licences under the restrictions, which are identical to those presently in place for bank deposits. Stablecoin companies like Circle, which aspires to become a commercial bank in the future, have backed this approach.
Until far, the SEC has mostly focused on regulating cryptocurrency projects that sell tokens with a guarantee of a return, particularly those that conduct initial coin offerings (ICOs) or other similar sales. Under the Howey Test, such assets are usually classified as investment contracts.