A congressional research agency has hinted that stablecoin regulations are becoming more likely following the recent collapse of TerraUSD (UST).
In accordance with new message According to the Congressional Research Service, the stablecoin industry lacks the regulations found in traditional financial systems to protect investors.
“Many observers believe that the stablecoin industry is under-regulated. Although in the traditional financial system [šādu scenāriju] could be mitigated somewhat by regulatory safeguards, the stablecoin industry has not included such measures.
UST, the algorithmic stablecoin issued by Terra (LUNA), crashed earlier this month after losing its peg to the US dollar.
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The Congressional Research Service hints that the collapse of UST could lead to regulations for the nascent industry, with some promising frameworks already proposed, including one that would limit which assets could secure stablecoins and determine which entities are allowed to issue them.
“Regarding the disclosure and composition of reserves, there have been several legislative proposals recently. In March 2022, Representative Hollingsworth introduced HR 7328, which would impose audited reporting requirements on stablecoin issuers and limit the assets that can cover [šos aktīvus]. Senators
Hagerty introduced the Senate version of the bill, S. 2022, in May 3970.
Some bills were also debated in the House and Senate. These discussion bills provide a possible framework for stablecoin issuers.For example, although these projects differ in approach, they will create institutions that are authorized to issue stablecoins, establish disclosure requirements for the assets that support stablecoins, provide standards for the composition of these reserves, and consider options for financial support for stablecoins.
2023-08-02 11:58:41
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