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