The Recent Terra Drop Portrays Private Instruments as Just an Illusion
Panetta in a statement noted that recent developments in the crypto industry show that believing in the usage of private instruments as money is just an illusion, since they cannot be exchanged at the same value as public funds at any time.
He also stated that there is no assurance that stablecoins can be exchanged for the same value, he referred to Terra temporarily losing its peg to the dollar.
In a recent Financial Times op-ed, Karel Lannoo, CEO of the Centre for European Policy Studies (CEPS), brought up supervisory issues in the EU’s MiCA proposal, as calls for strict crypto guidelines heighten.
He stated that supervision between national and European regulatory bodies is little. He also argued that the suggested rules and regulations make it easier to begin an exchange of crypto than a traditional one.
Mr. Karel noted that the rules and regulations on market control and internal trading are flexible and not as rigid as the already established rules for local markets. He believes that the EU should have looked into incorporating crypto into its already established rules than it creating an entirely new set of rules and regulations.
The UK Looking into Stablecoins Regulation
With all that is happening, the UK is also looking into creating regulations for stablecoins with no intent to make algorithmic stablecoins in its instructions, because they are volatile and provide no form of stability.
In a speech released recently, the financial services and market bill would consist of rules set to control stablecoins used as a means of payment. The representative also mentioned that the Government has made it clear that some stablecoins will not be used as means of payment since they are similar to some crypto-assets that lack support.
The UK governing body is looking to infuse stablecoins into its already existing electronic money laws. This would lead to stablecoins being properly monitored by the Financial Conduct Authority (FCA). Last month the UK stated that they are now open to crypto business and that they are not dropping their standards, but are going to maintain their technological neutral approach.