Push to Regulate Stablecoins Gains Momentum as TerraUSD Spirals

When the third largest stablecoin collapsed this week, investors lost more than $25 billion. They're going to be getting a great deal of attention over the next few days and weeks as the fall of the TerraUSD stablecoin lights a fire under the push to regulate the dollar-pegged cryptocurrencies and reignites a fight on Capitol

Timeline of Terrausd

On the 10th of May, the UST dollar peg hit lows of $0.6. The stablecoin was challenged over thin liquidity, shortly after the Luna Foundation Guards (LFG) finished building its $3 billion treasures last week.

Rumors are circulating online that Citadel Capital may be behind the UST crash as Janet Yellen announces a report on stablecoins. The post Rumors run riot as UST collapses amid Yellen report on stablecoins appeared first on CryptoSlate.

Following on from the death spiral for UST and Luna, affecting the entire Terra ecosystem, Do Kwon has finally tweeted out a plan which he hopes will eventually return UST to its peg and bring much relief to the Terra ecosystem. Whatever can be said about the character of Do Kwon, the co-founder of Terraform Labs, and the very vocal genius behind Terra, he is most certainly a fighter.

Following a failed attempt to defend the peg for the TerraUSD (UST) stablecoin, TerraForm Labs CEO Do Kwon has finally admitted that it is now embarking on a plan to “rebuild UST.” Recall that a sleuth of market events had caused UST to lose its peg from $1 to as low as $0.2, with ecosystem token Terra (LUNA) also dropping by over 90% in 24 hours.

Terraform Labs CEO Do Kwon has set out his plan of action to help the stablecoin TerraUSD (UST) return to its dollar peg. The post Terraform Labs CEO Do Kwon unveils plan to restore UST peg appeared first on The Block.

TerraUSD, one of the largest stablecoins in crypto, may have escaped a classic bank-run-style death spiral Monday night (May 9) thanks to a massive cash infusion from backers — and a timely trading halt on the world's largest cryptocurrency exchange. Stablecoins are increasingly seen as a potential competitor to fiat currencies in the payments market.

Macro guru and Real Vision CEO Raoul Pal says the recent issues with Terra's algorithmic stablecoin, UST, may lead to new stablecoin regulation. In a new interview with Bankless, the former Goldman Sachs executive says UST's recent loss of its US dollar (USD) peg is part and parcel of most financial markets. UST is designed The post After TerraUSD (UST) Depegging, Macro Guru Raoul Pal Says Stablecoin Regulation Could Be Coming appeared first on The Daily Hodl.

The UST stablecoin's dramatic decline in value featured in U.S. Treasury Secretary Janet Yellen's testimony before the committee on banking, housing, and urban affairs, U.S. Senate, on Tuesday. Yellen stated that the stablecoin's turbulence clearly illustrates risks associated with crypto assets to financial stability, adding that the treasury department would soon issue a comprehensive report The post $UST Decline: Here's U.S. Government's Quick Response appeared first on CoinGape.

“A stablecoin known as TerraUSD experienced a run and declined in value. I think that this simply illustrates that this is a rapidly growing product and there are rapidly growing risks,” said Secretary Yellen. The post US Treasury Secretary Yellen points to UST slip, asks for new stablecoin legislation by the end of 2022 appeared first on The Block.

On Monday, May 9, 2022, the stablecoin terrausd (UST) lost its parity with the U.S. dollar and dropped to an all-time low of $0.66 per unit. The stablecoin has been one of the most topical discussions in crypto during the past 24 hours, as many have been betting on whether it will fail or recover.