Why do you think the SEC has started targeting stablecoins?

[Tchulkaturin]

Lately, the SEC has been telling Congress to "act quickly" in regulating stablecoins. Here is my take on why they are so concerned.

A little less than two years ago, the repo markets started going bankrupt each night. As far as I understand, those are the markets that nations use to access the USD reserve currency. That revealed that the repo markets were undercapitalized and they restarted QE. But countries started getting around the issue by just buying stablecoins and converting them to dollars. Why would the US care? Their dollar is still the world's reserve currency and the stablecoins create demand for it. But they are adamant about regulating them now and they seem to want them gone all together. I read that Tether has stopped adding new funds.

My opinion about their reasoning on this is global control. Iran would be a great example. When they can only sell oil in dollars, and the dollar is controlled by the US, then the US essentially controls Iran. That is the real purpose of having a reserve currency. It isn't about finance, it is about control. If Iran does not obey the US, they will be cut off from the SWIFT system. Any country that wants to use dollars will be controlled by the US in the same way.

Stablecoins changed all that. It bypasses SWIFT all together. It allows nations to have access to dollars even if the US doesn't want them to. It doesn't add or remove and dollars from the system. But it does provide access to dollars unconditionally. That takes away the power that the dollar gives the US government over the world.

Here is one of the more recent stories, but there are quite a few more.

SEC Chair Hints Some Stablecoins Are Securities
https://www.coindesk.com/sec-chair-hints-some-stablecoins-are-securities

[stompix]

Iran would be a great example. When they can only sell oil in dollars, and the dollar is controlled by the US, then the US essentially controls Iran. That is the real purpose of having a reserve currency. It isn't about finance, it is about control. If Iran does not obey the US, they will be cut off from the SWIFT system. Any country that wants to use dollars will be controlled by the US in the same way.

Stablecoins changed all that. It bypasses SWIFT all together. It allows nations to have access to dollars even if the US doesn't want them to. It doesn't add or remove and dollars from the system. But it does provide access to dollars unconditionally. That takes away the power that the dollar gives the US government over the world.

You don't understand how sanctions work.

Nothing stops officials from Iran to pack suitcases full of money and go straight to Airbus and demand 100 Eurofighters, the problem with sanctions is that nobody wants to deal with them for the fear of the backslash coming against the company. China has frequent deals with Iran, they do that not because they deal in rials or yuans, it's because they don't care, doing this through shell companies or national companies that don't care as they don't do business in the US and Europe.
Iran can embrace any coins they want, they can pay with gold or oil (as they do know), the main problem is that nobody wants to sell them the equipment they need, and they won't sell it either for usdt or for doge or bitcoin.

Besides, the whole thing has another flaw, they are going to avoid swift by dealing with a centralized coin that can be seized by us at any time and completely destroyed? I already know what's you're thinking, what if this will be a digital rial or a digital yuan protected by those governments?? But in this case, what's stopping them to use the current versions of their currency?

The US doesn't care about what stablecoins can do against sanctions, they are more interested in the problems they can generate at home, that's why the current faction in power doesn't like them.