In recent weeks, many players in the crypto industry have stepped up to criticize the actions of the SEC. Some feel that the stock market watchdog is simply not empowered to regulate the crypto industry as a whole. Others pointed to the SEC move that they believe would be missing, of relevance.
Why not the Fed or the OCC to regulate stablecoins?
Like other crypto industry bosses before him, Jeremy Allaire spoke out on crypto news. The head of Circle, the company behind the stablecoin USDC, delivered his analysis on the regulatory efforts led by the Securities and Exchange Commission (SEC). If regulation, there must be on crypto activities, Allaire is not against it. He believes, however, that the latter should not be the fault of the SEC. According to him, the regulator is not the best institution to initiate such steps, in particular concerning stablecoins.
In an interview which he granted on Thursday 23 February to Bloomberg, the leader explained his point of view. According to him, a stablecoin is not a security. It is more akin to a system for regulating payments and banking activities than anything else.
Allaire considers that the SEC is absolutely illegitimate to want to regulate an activity which clearly does not fall within its prerogatives. This task would be more the responsibility of the Fed or the Office of the Comptroller of the Currency (OCC), which he considers better placed for this.
If the ambition of the SEC in relation to the crypto market is noble, the fact remains, for many, that it is poorly realized. More and more players in this industry are calling on the state body to adapt its strategy to tackle the real problems. In any case, we can estimate that the multiplication, in recent weeks, of the interventions of industry players, is not insignificant. It would eventually be a way to force the SEC to re-evaluate its priorities. What is certain is that market regulation, as desired by governments, will still cause people to cringe.
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