The US Securities and Exchange Commission (SEC) has reportedly received an approval from the Treasury Department and other agencies to regulate the $131 billion stablecoin market, Bloomberg reports, citing sources familiar with the matter. The Treasury Department is expected to publish a report which explains on how the SEC will regulate stablecoins this week.
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The report is also expected to urge Congress to pass legislation clarifying which coins should be regulated similarly to bank deposits. The document will allegedly also confirm that the US Commodity Futures Trading Commission still has a role in regulating stablecoins.
The news comes after SEC Chair, Gary Gensler, told Yahoo Finance in an interview that the cryptocurrency market still needs more regulatory supervision. According to Gensler, cryptocurrencies still do not have the "similar protections against fraud and manipulation and front running and other abuses."
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