EddieJayonCrypto
7 Apr 25
Commissioner Caroline Crenshaw of the U.S. Securities and Exchange Commission (SEC) criticizes the agency for underestimating the risks posed by stablecoins to retail investors. She highlights the lack of redemption rights for retail stablecoin users and the potential dangers posed by intermediaries...
SEC Commissioner Caroline Crenshaw criticizes the agency for underestimating the risks of stablecoins to retail investors. She points out the lack of redemption rights for retail stablecoin users and the potential dangers posed by intermediaries, especially unregistered trading platforms. Crenshaw disputes the SEC's claim about retail stablecoin users having redemption rights and raises concerns about stablecoin issuers' reserves. The SEC has stated that non-yield-bearing stablecoins are not considered securities under its jurisdiction, but has yet to formulate views on other types of stablecoins.
Commissioner Caroline Crenshaw of the U.S. Securities and Exchange Commission (SEC) highlights the risks posed by stablecoins to retail investors, particularly in the US dollar stablecoin market. She emphasizes the lack of redemption rights for retail stablecoin users and the potential dangers posed by intermediaries. Crenshaw also raises concerns about stablecoin issuers' reserves. Despite the SEC's announcement regarding non-yield-bearing stablecoins, the agency has not yet formed views on alternative types of stablecoins, such as those that are yield-bearing, of the algorithmic variety, or pegged to non-USD assets.