• US SEC has recently cracked down on several crypto companies, including Kraken and Paxos.
• Jeremy Allaire believes stablecoins should not be regulated by the SEC as they are part of the banking sector.
• Allaire spoke to Bloomberg about the current situation, asserting that the SEC isn’t the proper regulator for such assets.
US SEC Crackdown on Crypto Companies
The US Securities and Exchange Commission (SEC) has recently cracked down on several crypto companies in the country, starting with Kraken and its staking services. The exchange had to settle with the watchdog, pay a $30 million penalty, and halt its staking platform. Days later, the SEC sent a Wells warning to Paxos, alleging them of selling unregistered securities when it issues Binance USD (BUSD) stablecoin.
Stablecoins Not Regulated by SEC
Jeremy Allaire – CEO of Circle – opined that the agency is not best fit to oversee stablecoins in particular as these assets are part of the banking sector. He believes they need to be regulated by another watchdog in the States instead of the SEC.
Allaire spoke to Bloomberg about this situation and asserted that the SEC doesn’t seem like an appropriate regulator for such cryptocurrency assets. He pointed out that “everywhere in the world, including in US,” governments are specifically saying payment stablecoins should be regulated by banking regulators instead of securities regulators like SEC.
Non-Securities Nature of Stablecoins
The crackdowns by US securities regulator have caused a lot of concern in crypto community due to fact that stablecoins were widely considered non-securities before this incident occurred. This brought attention to other issuers like Tether and Circle as well .
It appears from Allaire’s comments that he believes stablecoins should not be regulated by US Securities and Exchange Commission but instead by another relevant watchdog or banking regulator within United States jurisdiction .