Gary Gensler, Head of the US Securities and Exchange Commission (SEC), says the agency will be "very active" in putting the cryptocurrency market into its investor protection program, Financial News reports. The SEC Chair's promise comes shortly after the President's Working Group on Financial Markets published a report on stablecoins calling on Congress to introduce "regulatory oversight" and formal "market structure" for stablecoins as soon as possible.
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"The transition to broader use of stablecoins as a means of payment could occur rapidly due to network effects or relationships between stablecoins and existing user bases or platforms," the report said.
Gensler warns: there is "a lot of hype" on the cryptocurrency market as the relative business has not come into either the US Commodity Futures Trading Commission or the SEC to be "within an investor protection framework." Earlier this year, Federal Reserve Chair, Jerome Powell, said the regulator sees no need to ban stablecoins or cryptocurrencies. Testifying in Congress in October, Powell added though that stablecoins are like "bank deposits, but they are to some extent outside the regulatory perimeter, and it is appropriate that they be regulated."
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