Gary Gensler of the SEC: Stablecoins Might as well be Securities
In responding to the long-time Senator of Pennsylvania, Pat Toomey, Gary Gensler, the U.S. SEC head, revealed that stablecoins might well be securities.
Stablecoins are digital currencies pegged to fiat and therefore move in sync. Their role in the crypto world is indispensable, critical in ensuring fluidity and liquidity in the fragile and developing space. Some of the leading stablecoins like USDT and USDC are minted by centralized entities. Meanwhile, others like DAI are algorithmically controlled and managed by a DAO, existing purely on-chain, specifically Ethereum.
USDT is the most liquid, with a market cap of over $68 billion at the time of writing, priming activities in over five blockchains.
Despite his comments on stablecoins, he remains positive on the space stating that it was upon the U.S. Congress to change applicable laws. This way, he explains, cryptocurrencies—most of which are technically securities in the eyes of the U.S. primary regulator—would mature while investors remain protected.
The crypto community is optimistic that under Gary, the U.S. will approve any of the many applications for a Bitcoin ETF, allowing institutions to participate in the high-octane and "investable" asset class.