SEC's Gensler says CFTC authority over stablecoins should be bolstered

FILE PHOTO - U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, testifies before the Senate Banking, Housing and Urban Affairs Committee during an oversight hearing on Capitol Hill in Washington, U.S., September 15, 2022. REUTERS/Evelyn Hockstein

WASHINGTON (Reuters) - The U.S. Congress should give the Commodity Futures Trading Commission more powers to police cryptocurrency stablecoins to reduce risks to the financial system, Securities and Exchange Commission Chair Gary Gensler said on Friday.

Stablecoins are usually pegged to the U.S. dollar and are primarily used to facilitate trading in other digital assets.