REGULATION

U.S. Treasury Secretary Yellen mentions UST: Regulating stablecoins is crucial and urgent, hopes to pass by the end of this year

share
U.S. Treasury Secretary Yellen mentions UST: Regulating stablecoins is crucial and urgent, hopes to pass by the end of this year

At a hearing on the 10th, U.S. Treasury Secretary Yellen pointed out the recent turmoil surrounding UST, stating, "A stablecoin named TerraUSD experienced a sudden drop and devaluation. To put it bluntly, this is a rapidly growing but also rapidly increasing risky product."

Table of Contents

US Treasury Secretary Yellen mentioned the recent turmoil surrounding TerraUSD, a stablecoin that experienced a sharp drop and devaluation, during a hearing on the 10th. She straightforwardly described it as a rapidly growing but increasingly risky product.

According to the foreign media The Block's report, US Treasury Secretary Yellen responded to Senator Pat Toomey's concerns about stablecoins during the hearing on the 10th, confirming that congressional regulation of stablecoins is crucial and urgent, and she actively called for stablecoin regulation to be passed by the end of this year.

Although Senator Pat Toomey's legislative proposal targets non-algorithmic stablecoins, he also explained the difference to Yellen about UST. According to the President's Working Group responsible for cross-regulatory oversight of cryptocurrencies, if Congress fails to pass legislation, oversight will be conducted by the Financial Stability Oversight Council (FSOC).

Previously, US Congressman Tom Emmer of Minnesota also introduced legislation regarding interest-bearing stablecoins, which is more likely to regulate stablecoins like UST, a stablecoin that offers interest through a third-party lending platform operated by the same team.

Well-known figure in the Chinese cryptocurrency community, Yang Mindao, stated earlier today that the situation with LUNA will definitely attract significant regulatory sanctions. Multiple parties are involved in this event, including public protocols, retail traders, non-governmental organizations engaging in market operations publicly and privately, market makers, and exchanges, making the situation complex.

As of the deadline, UST remains unpegged, with LUNA plummeting over 45%. The founder of Terra stated, "We are about to announce a recovery plan for UST. I am not silent, just need to focus."