This week’s Law Decoded: Is depegging a real threat to financial stability?
Janet Yellen calls on lawmakers to develop a consistent federal framework for stablecoins, Hester Peirce urges to allow room for failure and more. This week will be remembered as the one when the stablecoins showed an unexpected ability to depeg. Terra’s TerraUSD (UST) dropped to a shocking $0.29 following the general meltdown of both crypto and financial markets, but it was also the headliner of stablecoins’ niche, while Tether (USDT) lost the balance and slid to $0.96 for a short time. The United States Treasury Secretary Janet Yellen felt it necessary to assure everyone that, given the....
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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....
Bank of England’s deputy governor for financial stability, Sir Jon Cunliffe, has warned that cryptocurrency is getting closer to posing a threat to global financial stability due to the sector’s rapid growth. Crypto is also being integrated into the traditional financial system at a rapid rate. He urges regulators to take action now. Bank of England’s Jon Cunliffe Warns Crypto Is Closer to Becoming a Threat to Global Financial Stability Sir Jon Cunliffe, Bank of England’s deputy governor for financial stability, talked about bitcoin and cryptocurrencies in....
RBI Governor, Shaktikanta Das has stated that private currencies such as cryptocurrencies are a threat to the country’s financial stability. The criticism against cryptocurrencies in a way is to caution and deter investors from trading as this asset class poses certain kinds of risks. Das, also mentioned in his censure that cryptocurrencies do not have […]
Determining the future of who can and cannot custody crypto and how much you need to know about them remains a central topic of discussion. Every Friday, Law Decoded delivers analysis on the week’s critical stories in the realms of policy, regulation and law.Editor’s noteLast week’s Law Decoded sounded the alarm on threats to self-custodial wallets in the U.S. in particular. While such concerns have continued to take shape, nothing concrete has emerged from the U.S. Treasury, which was at the heart of last week’s conversation.Though I don’t like to recycle themes, it seems a reasonable....
Stablecoins and CBDCs and their related issues of privacy and surveillance lead this week's Law Decoded. Editor’s noteAs many of you were certainly following in real time, a bull market gave way to a bloodbath yesterday, which happened to be Thanksgiving in the U.S. Personally, I’ve never thought that Bitcoin’s price was any sort of proof of its value proposition, but for many its retreat yesterday certainly dashed many a planned gloat to family members more receptive to massive gains than concepts like censorship resistance.But obviously volatility is part of the game with....