Hester Peirce, the "crypto mom" of the US Securities and Exchange Commission (SEC), is indicating her support for a regulatory framework for stablecoins that offers "room for failure."
Pierce was requested to speak about the activities being taken by US regulatory authorities with reference to cryptocurrencies during an online forum hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF) on Thursday.
"one place we might see some movement is around stablecoins," Peirce said. She stated that this was an area that had gotten a lot of attention this week.
"it’s been one area within crypto that’s really had quite a moment and there’s a lot of stablecoin use and therefore people are thinking down the road, if this gets even bigger do we want to have some kind of regulatory framework?" Peirce continued.
The "crypto mom" also indicated that she has attempted to persuade the SEC to utilize its regulatory authorities to grant exemptions to specific technologies, claiming that this would allow for essential experimentation.
"We need to allow room for there to be failure because that obviously is part of trying new things and our framework really does allow for that kind of trial and error."
The depegging of the USD stablecoin TerraUSD (UST) this week was addressed by US Secretary of the Treasury Janet Yellen, who used the episode as justification for adopting a "consistent federal framework" on stablecoins.
The regulations, Peirce concluded, "try to cover what exists today, what is going to exist tomorrow and that’s not easy to do."