Skip to content
Crypto Birb
Crypto Birb

Your Crypto & Blockchain Encyclopedia

  • HOME
  • Crypto News Live (English)
  • BLOG POST
  • BLOGS IN HINDI
  • Web Stories
  • Crypto Tools
  • Our Services
  • CONTACT US
Crypto Birb

Your Crypto & Blockchain Encyclopedia

Treasury Secretary Janet L. Yellen.
May 18, 2022May 18, 2022

Financial watchdogs are urging Congress to create new regulations for stable coins however they could decide to take action on their own if lawmakers hesitate

Sharing is caring!

  • Facebook
  • Twitter
  • LinkedIn

The cryptocurrency crash that erased around $500 billion in value in the past two weeks has refocused Washington policymakers’ attention speeding up the process to establish federal regulations to regulate the free-wheeling market.

regulations for stable coins

Financial watchdogs are focused on stablecoins — a part of the cryptocurrency that’s designed to provide traders with a refuge from the volatile swings of the overall cryptocurrency market, following the collapse of one known as TerraUSD — which is also identified by its ticker UST — collapsed the last week.

The supporters of the other stable coins claim their coins are built on more solid bases because they hold sufficient cash or other liquid reserves to satisfy any request for redemptions.

Regulators aren’t making such distinctions.

“A lot to be done here, and in the meantime, the investing public is not that well-protected,” Securities and Exchange Commission Chair Gary Gensler said Monday in his address at the Financial Industry Regulator Authority’s (FINRA) annual conference. “We’re going to continue to be a cop on the beat.”

Treasury Secretary Janet L. Yellen told lawmakers this week that the fate of UST underscored the need to allow bank-like requirements to stablecoin issuers in similar to what an advisory panel of regulators led by the Treasury suggested in the fall. However, an official from the Treasury senior official told lawmakers that regulators shouldn’t just wait for legislators to act. “In the absence of congressional action,” the official stated, under anonymity to provide a honest review of the volatility last week, it “will put regulators and stakeholders on a stronger footing if they feel the need to act alone to mitigate the risks.”

It’s not entirely the case that what was the cause of sending UST to its tailspin. Crypto-sleuths have a few theories regarding how the stablecoin, which tried to make use of sophisticated financial engineering to hold the price of $1 fell off its dollar peg then continued to fall. The price was around 10 cents by Monday. This was a drop from close to 20 cents on the weekend. This was after an organization led in the name of UST founder Do Kwon revealed it had sold off 3 billion worth of bitcoin in a failed attempt to stabilize the stablecoin.

Prices for crypto are falling. The future is uncertain.

Kwon on Monday stated that he’s not going to give up and offering the idea of a fresh start to to revive the project. The result was clear enough: The digital similar to a banking rout erased $42 billion in value of coins that were part of the venture, as per to blockchain analytics company Elliptic.

Source was https://www.washingtonpost.com/business/2022/05/16/crypto-crash-regulations/

Sharing is caring!

  • Facebook
  • Twitter
  • LinkedIn
CRYPTO NEWS

Post navigation

Previous post
Next post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest Posts

  • 7 Best Ways to Earn Free Cryptocurrency in 2023
    CRYPTO NEWS Technology

    7 Best Ways to Earn Free Cryptocurrency in 2023

    March 19, 2023
  • Breaking News: RBI and UAE Central Bank Sign MoU to Revolutionize Financial Innovation(CDBC)
    Alert CRYPTO NEWS

    Breaking News: RBI and UAE Central Bank Sign MoU to Revolutionize Financial Innovation(CDBC)

    March 19, 2023
  • BlackRock explores tokenization of stocks
    CRYPTO NEWS

    BlackRock explores tokenization of stocks

    March 19, 2023
  • How Whales Move $1 Billion Worth of USDT Off Crypto Exchanges in Just Days
    Alert CRYPTO NEWS Why Crypto down today

    How Whales Move $1 Billion Worth of USDT Off Crypto Exchanges in Just Days

    March 16, 2023
  • We are thrilled to announce that Uniswap has expanded its exchange services to the Binance Smart Chain!
    CRYPTO NEWS Technology

    We are thrilled to announce that Uniswap has expanded its exchange services to the Binance Smart Chain!

    March 16, 2023
  • India Takes Firm Action Against Cryptocurrency Crimes Under PMLA Regulations
    CRYPTO NEWS

    India Takes Firm Action Against Cryptocurrency Crimes Under PMLA Regulations

    March 15, 2023
  • Evidence Suggests Bitcoin Still Moves Lower Before New Bull Market
    Bitcoin CRYPTO NEWS

    Evidence Suggests Bitcoin Still Moves Lower Before New Bull Market

    March 13, 2023
  • Bitcoin Surges Above $24.3K Following President Biden’s Speech | Why Bitcoin up today
    CRYPTO NEWS Why Crypto Up today

    Bitcoin Surges Above $24.3K Following President Biden’s Speech | Why Bitcoin up today

    March 13, 2023
  • Litecoin’s Halving: What Investors Need to Know in 2023
    Cryptocurrency Basics Litecoin

    Litecoin’s Halving: What Investors Need to Know in 2023

    March 13, 2023
  • U.S. Treasury’s Janet Yellen Works to Prevent SVB Collapse, Not Bailout
    CRYPTO NEWS Why Crypto down today

    U.S. Treasury’s Janet Yellen Works to Prevent SVB Collapse, Not Bailout

    March 12, 2023

Recent Comments

  1. Ahmed Uphaus on अल सल्वाडोर का सकल घरेलू उत्पाद अपने इतिहास में पहली बार दो अंकों से बढ़ गया – राष्ट्रपति बिटकॉइन से संबंधित प्रौद्योगिकियों पर अधिक ध्यान केंद्रित किया है
  2. Seymour Santini on Crypto Meaning in Hindi
  3. admin on The Metaverse is Expanding and Merging The Science Fiction Elements Into Virtual Reality!
  4. Abdul Razzaq on The Metaverse is Expanding and Merging The Science Fiction Elements Into Virtual Reality!
  5. Indu vashish on What is Play To Earn Game Token?

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021

©2023 Crypto Birb | WordPress Theme by SuperbThemes