Esther Pierce: Congress must help create rules for stablecoins

The chair of the US Securities and Exchange Commission (SEC) called on the US Congress to get involved in the regulation of digital currencies and stablecoins in order to prevent a repeat of the situation with Terra.

Hester Peirce said in an interview with Bloomberg that the rules governing the use of any digital currencies should be as clear as possible. In addition, the commissioner believes that the US Congress is obliged to take part in the development of rules in order to speed up the process.

According to Pierce, the events of last week, when one of the largest Terra networks (LUNA) collapsed and users lost billions of dollars, should prompt Congress to intervene in the regulation of the cryptocurrency industry. The SEC commissioner is confident that cooperation between the Commodity Futures Trading Commission (CFTC), which oversees the derivatives market, and the SEC will not bring the desired results. Therefore, according to Pierce, the contribution of Congress would be very useful.

However, the head of the SEC does not deny that there are areas in which the commission must provide regulatory clarity - for example, the work of brokers, dealers and investment advisors seeking to work with cryptocurrencies. According to Pierce, the industry is in dire need of a speedy settlement, otherwise the market may again face the events that were observed last week.

The SEC chair has previously said that creating a single regulatory body to oversee crypto assets will not solve the industry's problems. In her opinion, regulators are not able to create an acceptable legal framework for the crypto industry using coercive methods. Pierce believes that departments need to reconsider their approach to regulation and start working more effectively in order to avoid prosecution of cryptocurrency projects.