US SEC Set to Crack Down on Stablecoins in New Report

Bloomberg reported that the US Treasury Department and other government agencies are expected to publish a report this week explaining the SEC’s authority over stablecoins

article-image

Blockworks exclusive art by Axel Rangel

share

key takeaways

  • SEC Chairman Gary Gensler has been warning about impending crypto restrictions, especially stablecoins which he called “poker chips,” during a Washington Post virtual event
  • Federal Reserve Chairman Jerome Powell has said that stablecoins pose a threat and exist within an “underdeveloped regulatory framework”

On the heels of revelations that the US Securities and Exchange Commission (SEC) served Terra founder Do Kwon at an event in New York City in September, the commission is set to crack down on the $134.5 billion stablecoin market, according to Bloomberg.

Citing unnamed sources, Bloomberg reported that the US Treasury Department and other government agencies are expected to publish a report this week explaining the SEC’s authority over stablecoins and urging Congress to pass bills that regulate certain coins similarly to bank deposits.

The SEC, Commodity Futures Trading Commission and the Treasury Department did not respond to immediate requests for comment by Blockworks.

SEC Chairman Gary Gensler has been warning about impending crypto restrictions, especially stablecoins which he called “poker chips,” during a Washington Post virtual event, Blockworks previously reported. Gensler also said he thinks digital assets have potential, but they are not immune to regulatory oversight.

Separately, in July, Federal Reserve Chairman Jerome Powell has said that stablecoins pose a threat and exist within an “underdeveloped regulatory framework.” Committee members also remarked that these “new financial arrangements” lack structural maturity. 

Powell has noted in the past that an establishment of a central bank-backed digital currency would make the market less reliant upon stablecoins, Blockworks reported. However, crypto enthusiasts have questioned whether a CBDC would work and whether it would function differently than the current fiat currency and system in place. 

The report expected to come out this week could reinforce the comments made previously by US elected officials and continue to pave the way for new regulatory standards for stablecoins. “The report will also reaffirm that the Commodity Futures Trading Commission has a role in overseeing stablecoins,” Bloomberg reported.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

The $135 million raise shows that TradFi giants are serious about crypto adoption

article-image

The banking system still processes payments like it’s 1975. Crypto might have a fix.

article-image

Fiserv’s launch follows Senate passage of the GENIUS Act for stablecoin regulation.

article-image

Bitcoin is emerging as “the new standard for long-term corporate resilience,” Swan Bitcoin CIO says

article-image

Cybersecurity experts explain how the attack could have been prevented