Sumary of SEC Chairman signals stablecoins and other tokens could fall under its rules on security-based swaps and says more regulation is coming:
- SEC Chair Gary Gensler spoke at the American Bar Association Derivatives and Futures Law Committee Virtual Mid-Year Program.
- Gensler told the American Bar Association Derivatives and Futures Law Committee’s virtual mid-year program on Wednesday that stablecoin issuers would need to register with the regulator and ensure certain levels of transparency in how they transact.
- TOP VIDEOS FOR YOU “Make no mistake: It doesn’t matter whether it’s a stock token, a stable value token backed by securities, or any other virtual product that provides synthetic exposure to underlying securities,” Gensler said.
- Stablecoins, which are crypto coins pegged to an asset such as the dollar, such as Tether, have come under greater scrutiny from regulators given their potential for destabilizing payments systems.
- On top of that, the Genlser said the SEC will require companies to have a host of new counterparty requirements for capital and margin, including internal risk management systems, supervision and chief compliance officers, trade acknowledgement and confirmation, record-keeping and reporting procedures.