he U.S. Congress should give the Commodity Futures Trading Commission more powers to police cryptocurrency stablecoins to reduce risks to the financial system, Securities and Exchange Commission Chair Gary Gensler said on Friday. Stablecoins are usually pegged to the U.S. dollar and are primarily used to facilitate trading in other digital assets. With around $150 billion in market capitalization, stablecoins have many similarities to money market funds, and need to be regulated accordingly, Gensler said at a conference held by Georgetown University’s Psaros Center for Financial Markets and Policy in Washington. While the CFTC has anti-fraud and anti-manipulation regulatory authorities over firms that issue dollar-backed stablecoins, they do not have “actual plenary authority to write rules around the exchanges,” Gensler said. “I think the CFTC could have greater authorities. They currently do not have direct regulatory authorities over the underlying non-security tokens,” he said. The vast majority of cryptocurrencies, including so-called algorithmic stablecoins, are securities, and fall under the SEC’s authority, while a handful are not, Gensler said.
Read more : SEC’s Gensler says CFTC authority over stablecoins should be bolstered.
