- Governing bodies, on the other hand, anticipate stable coin rules.
- The stable coin market leader Tether, predicted to have a hard hit by the crackdown.
Recently, private companies have issued various stable currencies. Assisting in the expanding ecosystem’s liquidity and settlement. And as an alternative to fiat. Cryptocurrencies, recognized for their volatile market emotions and usefulness efforts.
Stable coins, on the other hand, are pegged to a unit of the underlying asset. Faster blockchains and localized legal tender are common. Stable coin central banks are buckling up. Governing bodies, on the other hand, anticipate stable coin rules.
According to reports, the SEC and other US authorities have reached an agreement. The authority is drafting laws for the stable coin business. The SEC will also declare its new “Significant Authority” over the industry. This week’s Treasury Department stable coin report is highly awaited.
Compared Stable Coins to Poker Chips
Consequently, the report will erode the CFTC’s regulatory authority (Commodity Futures Trading Commission). And the Treasury Department for stable coins. The Treasury Department study came out in July, during the session of President’s Working Group on Financial Markets (PWG).
According to the sources, Gary Gensler supports stable coin control. Empower the Commission to take action against the issuing body. Previously stable currencies, compared with poker chips by Gary Gensler.
In the first half of 2021, stable currencies like Tether and USDC traded for approximately $3 trillion. It has also expanded exponentially since its start. Tether is the world’s fourth-biggest stable currency and crypto asset. The 24-hour trade volume is presently above $62 billion. The market valuation is now above $70 billion.
The stable coin market leader Tether predicted to have a hard hit by the crackdown. More so. USDT has also been accused of money laundering. For Tether to create new currency, assets are not deposited, unlike USDT. The most popular crypto pair is USDT. Several exchanges need customers to convert USD to USDT before they may trade. Also, many individuals utilize USDT to store profit extractions.