U.S. Treasury Secretary Janet Yellen reiterated her stance on stablecoin regulations and said it’s “highly appropriate” to have a framework ready by the end of this year, as TerraUSD (UST) loses its dollar peg.

Fast facts

  • Yellen said at a Tuesday hearing before the Senate Banking Committee that algorithmic stablecoin UST “experienced a run” and declined in value.

  • “This simply illustrates that this is a rapidly growing product and there are rapidly growing risks,” Yellen added. “We really need a consistent federal framework.”

  • U.S. President Joe Biden in March issued an executive order on digital assets, asking federal agencies to coordinate efforts and produce reports for regulation and policy on digital assets including stablecoins.

  • Yellen added the Treasury will “issue a comprehensive report shortly.”

  • The price of UST, the algorithmic stablecoin project backed by Terraform Labs PTE Ltd., fell as low as US$0.70 on Wednesday morning Asia time, according to CoinGecko data.


source :  https://finance.yahoo.com/news/terra-ust-fiasco-cited-yellen-030120307.html

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