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The past few weeks have been very confusing for the crypto market as we have witnessed a terra ecosystem crash in a market-wide fix. As a result, Circle CEO Jeremy Allaire states that recent events are speeding up cryptographic regulations.
Market crash speeds regulation
Jeremy Aller, CEO of blockchain peer-to-peer payment solutions company and publisher of USDC Stablecoin Circle, said he had talked about the market collapse in a conversation with Yahoo Finance Live on Monday. He expected recent events to urge lawmakers to create crypto market regulations... Allaire said:
“When you make a big explosion, it certainly accelerates the need for Congress to act and establish some boundaries around people and things involved in running dollars table coins in the United States. Probably. “
Terra and its algorithm stablecoinTerraUSD (UST) have grabbed the headline that even the market-wide plunge that Bitcoin fell to 2020 price levels last week. In particular, within just a few days, the once promising Stablecoin innovation collapsed with the LUNA token.
Allaire said in a discussion that the high yields offered to investors by Terra’s anchor protocol indicate that the system was not sustainable. In particular, the first signs that the UST lost its equivalence to the dollar came after a surge in withdrawal from the anchor protocol. The circle chief said:
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“I think what was unfolded with these volatile stablecoins like UST was completely predictable,” he added. It really drives people to buy this Luna token, create these UST tokens and put them in this 20% interest rate. This was too good to be true. “
It’s worth noting that Allaire isn’t the only one to see rapid regulation following the once-promising collapse of the Terra ecosystem.As reported by ZyCrypto Monday, Michael Saylor of MicroStrategy Expressed similar feelings: “It will accelerate stable coins, all coins, and some coveted regulations of exchange.”
The regulation wheel is spinning
Already, lawmakers seem ready to take action. US Treasury Secretary Janet Yellen last week urged lawmakers to provide cryptographic restrictions by the end of the year, as she said.
“I don’t characterize [cryptocurrencies] At this scale, they are a real threat to financial stability, but they are growing very rapidly and pose the same kind of risk we have known for centuries in relation to the run on the bank. indicate. “
Similarly, SEC Chair Gary Gensler said investors in the cryptocurrency sector need more protection. The SEC chair suggested that digital asset service providers and crypto developers have not given investors full disclosure.
