- “Crypto mom”, Hester Pierce, is showing her support for a regulatory framework for stablecoins that allows “room for there to be failure.”
- Pierce stated that one place we might see some movement is around stablecoins.
- She has made an effort to urge the SEC to use its regulatory powers to provide exemptions to particular technologies.
The United States Securities and Exchange Commission’s (SEC) “crypto mom”, Hester Peirce, is showing her support for a regulatory framework for stablecoins that allows “room for there to be failure.”
On Thursday, while speaking at an online panel hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF), Pierce was asked to shed some light on the actions that are being taken by U.S. regulatory bodies with regard to cryptocurrencies.
Peirce answered that “one place we might see some movement is around stablecoins.” She mentioned that this was an area that received a lot of attention throughout this week.
Peirce added that “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?”
The “crypto mom” also stated that she has made an effort to urge 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.”
The United States Secretary of the Treasury, Janet Yellen,mentioned the depegging of the USD stablecoin TerraUSD (UST) this week and used the incident as a reason for creating a “consistent federal framework” on stablecoins.
Peirce concluded by saying that the regulations”try to cover what exists today”, but also “what is going to exist tomorrow and that’s not easy to do.”