News - Stablecoins and DeFi: the SEC's next target?
After Binance and numerous altcoins, the SEC’s next target may already be known - this time against Stablecoins and DeFi.
Stablecoins at Decentralized Finance (DeFi) could be the next target of the U.S. Securities and Exchange Commission. At least that is what investment bank Berenberg claims, according to multiple media reports.
According to this report, the SEC could in the future focus on regulating stablecoins such as Tether (USDT) or the USDC issued by Cirlce (the company behind Coinbase). By focusing on stablecoins in this way, the SEC could also weaken the DeFi ecosystem. According to Berenberg, this would particularly affect Coinbase.
The crypto exchange had generated net revenue of just under $200 million in the first quarter of 2023 with interest income from USDC reserves. A revenue that would be jeopardized by increasing regulation. Regulation of stablecoins is also shifting to Jerome Powell’s focus. The Fed chief wants more control over cryptocurrencies that hedge the U.S. dollar.
It is true that the SEC is currently working on a regulatory offensive against the crypto sector. However, it remains to be seen whether the investment bank’s prediction will actually come true.