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US Treasury Secretary Janet Yellen delivered an ultimatum to Congress at the end of the week, recognizing stablecoins as a threat to financial stability at a meeting of the FSOC Council. This body was created in 2010, after lawmakers investigated the US mortgage crisis of 2008, which brought down the global economy.
The FSOC, where government financiers and regulators are represented, has the power to take emergency legislative action if Congress refuses to do so, so stublockins without options will become regulated tokens in the near future.
Yellen sees the regulation of the issuance of cryptocurrency pegged to the dollar in a strict version: a banking license for issuers and placement of fiat collateral in Treasury accounts. The rest of the FSOC members may not support the position of the Ministry of Finance. If congressmen take up the law, it will simply legitimize the already existing rules for working in the cryptocurrency market.
Now the total capitalization of the 8 largest stablecoins is $ 150 billion, of which 81 billion are in Tether USD. This company is already indirectly regulated in the United States.
According to a New York court decision, the USDT collateral is confirmed on a quarterly basis by independent auditors, Tether blocks wallets at the request of law enforcement agencies, freezes and returns tokens stolen by hackers to exchanges.
The second largest stablecoin USD Coin is US-licensed, as are two more tokens of the 8 largest coins pegged to the US dollar: Gemini and Paxos USD.
According to investors, the legislative recognition of the cryptoanalogue of the dollar will lead to an explosive growth in retail settlements using these assets, requiring a single decentralized platform. Obviously, Hedera Hashgraph (HBAR) has the greatest prospects in this regard, where USDC and a number of other national currencies are already circulating within the framework of payment systems created on this blockchain by commercial banks.
The investment interest allowed the HBAR utility token to return to the top 30 cryptocurrencies ranking, showing the highest daily growth result of + 22%.
The Hedera network is ideal for stablocks, thanks to the acyclic DAG graph, which does not require miners to work when confirming a transaction. This ensures low commissions and high speed of transfers. Additional stability and security of the distributed ledger is achieved by the presence of nodes that can be deployed to launch their own tokens and work the PoS consensus.
The second place after HBAR in terms of daily growth in the top-30 ranking was taken by LUNA – the service coin of the Terra platform, which produces algorithmic stabilokins UST. They do not require regulatory approval or the storage of real fiat in bank accounts.
USTs can be released against LUNA bail, which are burned, raising the total value of utility tokens. In turn, the Terra blockchain is deployed through the Cosmos ecosystem, which will soon have a mechanism for the smooth and reliable movement of assets to Ethereum and any other networks.
Technologically and economically, UST surpasses DAI, the first algostablecoin from Maker DAO, by having its own blockchain, where DeFi projects are being built and add-ons for tokenizing real assets. Increased investor interest pushed LUNA to 10th place in the ranking, overtaking Dogecoin and Polkadot.
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