Conversations in the crypto world have centered around stablecoins this week as their touted stability comes into question.
What was one of the largest stablecoins, TerraUSD (UST), fell from grace after it depegged from its $1 value on Monday and since dropped as much as 70% to $0.2998, when it was never supposed to deviate from the dollar-equivalent value. Its founder, Do Kwon, unveiled a plan to save its stablecoin, but concern from community members persists.
Meanwhile, U.S. Treasury Secretary Janet Yellen pushed for more stablecoin regulation during an annual testimony in front of the Senate Banking Committee on Tuesday, right in the midst of UST struggling to retain its peg.
“This UST situation could give governments, like the U.S., an excuse to crack down on stablecoins even harder,” George Harrap, co-founder of Solana-focused portfolio dashboard Step Finance, told TechCrunch. “We’ve seen this before; however, stablecoins have been getting a lot of regulatory attention, and this …
