The Fed cites worries about stablecoin in its latest Financial Stability Report
The report points out stablecoin’s possible low stress resistance and overuse in leveraged cyptocurrency trading, reiterates its position on CBDC. The United States Federal Reserve Board released its semiannual Financial Stability Report on Monday. The report points to the volatility on commodities markets brought on by the Russian invasion of Ukraine, the spread of the omicron variant of COVID-19 and “higher and more persistent than expected” inflation as sources of instability.Stablecoins and some types of money market funds were singled out in the report and noted to be prone to runs.....
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As U.S. lawmakers push for the urgent regulation of stablecoins, the Financial Stability Oversight Council (FSOC) and the Federal Reserve Board warn about the risks of stablecoin runs that threaten the country’s financial stability. Treasury Secretary Janet Yellen brought up the terrausd (UST) fiasco as an example of why a comprehensive regulatory framework is urgently needed.
Treasury Secretary Janet Yellen Testifies Before Senate Committee
Stablecoins have become a hot topic in Washington. Following Monday’s terrausd (UST) fiasco, U.S. lawmakers are calling for....
Terra's UST dropped as low as $0.29 and Tether's USDT stablecoin briefly depegged from the dollar to hit $0.96 on Wednesday. According to United States Treasury Secretary Janet Yellen, the stablecoin market is not at the scale at which the drop in the price of TerraUSD (UST) and Tether (USDT) below $1 would present a threat to the country’s financial stability.In a Thursday hearing of the House Financial Services Committee on the Financial Stability Oversight Council’s Annual Report to Congress, Yellen hinted that the stablecoin market was not yet at a size in which UST dropping to under....
Janet Yellen said it would be “highly appropriate” to aim for “a consistent federal framework” on stablecoins by the end of 2022 in the U.S., given the growth of the market. United States Secretary of the Treasury Janet Yellen called on U.S. lawmakers to develop a "consistent federal framework” on stablecoins to address risks to financial stability.In a Tuesday hearing of the Senate Banking Committee on the Financial Stability Oversight Council Annual Report to Congress, Yellen reiterated her previous position calling for a regulatory framework on stablecoins, citing a November report from....
The Financial Stability Oversight Council (FSOC), a group of U.S. regulators, warned that bitcoin and blockchain are threats to financial stability and noted they need to adapt to the changing market structure if cryptocurrency reduces the importance of traditional centralized intermediaries. The FSOC includes the Federal Reserve, the Securities and Exchange Commission and the Treasury Department. The Council is charged with identifying risks to the financial stability of the United States, promoting market discipline, and responding to emerging risks to the stability of the financial....
Maker hopes to reignite demand for its DAI stablecoin through the fee reduction. Decentralized finance lending and stablecoin protocol MakerDAO has adjusted stability fees across a wide range of crypto assets used as collateral on the platform.The move comes as the demand for DAI and other stablecoins has cooled amid the recent crypto market retracement, with Maker hoping to drive up demand for DAI minting through the reduction in fees.⚠️Maker Protocol Changes ⚠️ (1/5) ETH-A Stability Fee: 5.5% → 3.5% ETH-B Stability Fee: 10% → 9% ETH-C Stability Fee: 3% → 1% WBTC-A Stability Fee: 4.5% →....