Officials from around the globe continue to discuss ways to mitigate the risks of stablecoins.
It’s been 2 days since TerraUSD (UST) depegging, however those long waves that triggered this incident are being reported. It was reported that the Congressional Research Service described the UST crash as an “run-like” scenario and claimed that the cryptocurrency industry isn’t at the equivalent degree in terms of “adequate regulating” as the traditional financial market.
Michael Barr, former advisory board member of Ripple Labs and United States President Joe Biden’s choice as vice chair of supervision within the Federal Reserve, definitely agrees with this. During the confirmation hearing Barr spoke of “some significant risks” that the latest technologies and cryptocurrency, specifically, carry with them.
It’s not just in the U.S. where the regulators became worried regarding stablecoins. The director of markets executive in the U.K.’s Financial Conduct Authority (FCA), Sarah Pritchard, reassured reporters of the fact that FCA would “absolutely” take the depegging incident into consideration. This is not surprising considering the plan by authorities at the British Treasury to use stablecoins as an acceptable payment method.
The latest turmoil has caused even the Group of Seven nervous, which has prompted the Financial Stability Board to speed the process of regulating crypto-assets. The officials from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States even required an exclusive gathering in the town of 40,000 of Koenigswinter in South Korea, and there was a controversy within the Conservative Party of South Korea was even able to call for a hearing before the House about the matter.
17 questions about crypto
What do we help we as the U.S. bolster its economic competitiveness when it comes to digital assets? This is a question that has been asked by the United States Department of Commerce believes that 17 additional questions will help us find the answer to this. The department will issue 17 questions in a call for public comment via the International Trade Administration. We hope that the response from the public will aid in the development of an extensive regulatory system.
A fight to get 401(k) continues
In a second recap of a heated debate that was held a few months ago Florida representative Byron Donalds introduced the Financial Freedom Act into the United States House of Representatives. The primary goal for the legislation is to block from the U.S. Department of Labor from restricting the kinds of investments that may be included in Americans auto-directed 401(k) pension plans. The plan would want to prohibit retirees from incorporating crypto into their 401(k) plan.
The debut of Chainabuse
Binance, Circle, TRM Labs and four other large crypto companies have set out to self-regulate through the launch of a community-driven fraud report tool called Chainabuse. The platform is designed to help users actively to report fraud and debate cases and will provide an online database of illegal actions to look into projects prior to investing in them.