{"id":61253,"date":"2022-05-10T18:12:19","date_gmt":"2022-05-10T15:12:19","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61253"},"modified":"2025-09-05T11:06:15","modified_gmt":"2025-09-05T08:06:15","slug":"us-treasury-secretary-janet-yellen-comments-on-ust-stablecoin-incident","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/us-treasury-secretary-janet-yellen-comments-on-ust-stablecoin-incident\/","title":{"rendered":"US Treasury secretary Janet Yellen comments on UST stablecoin incident"},"content":{"rendered":"<p>U.S. Treasury Secretary Janet Yellen urged Congress to pass legislation regulating stablecoins by the end of 2022. At a hearing of the Senate Banking Committee she referenced the incident with the algorithmic stablecoin TerraUSD (UST), which lost its peg to the dollar.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Janet Yellen is talking about $UST\u2026 and her thoughts are arguably accurate. <\/p>\n<p>Regulators can\u2019t help but drop the hammer when they see these things happen, for better or for worse. <\/p>\n<p>Shot ourselves in the foot this time. <a href=\"https:\/\/t.co\/4wZhhArRxA\">pic.twitter.com\/4wZhhArRxA<\/a><\/p>\n<p>\u2014 The Wolf Of All Streets (@scottmelker) <a href=\"https:\/\/twitter.com\/scottmelker\/status\/1524033037016649732?ref_src=twsrc%5Etfw\">May 10, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Yellen noted that UST endured a <span data-descr=\"a bank run\" class=\"old_tooltip\">bank run<\/span> and fell in price.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cI believe this illustrates that this rapidly developing product poses risks to financial stability, so we need regulatory frameworks,\u201d she said.<\/p>\n<\/blockquote>\n<p>The crypto-friendly senator Pat Toomey stressed that UST is an algorithmic stablecoin.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThat means that by definition it is not backed by cash or securities, as more traditional stablecoins are. I think that&#8217;s an important distinction,\u201d he explained.<\/p>\n<\/blockquote>\n<p>Earlier <a href=\"https:\/\/u1f987.com\/en\/news\/us-senate-holds-hearings-on-stablecoins\">described &#8216;stablecoins&#8217; as an important innovation<\/a>, which can speed up and cheapen payments, bring benefits to business, and help foster the development of the digital economy.<\/p>\n<p>Earlier, as the crypto market crashed, <a href=\"https:\/\/u1f987.com\/en\/news\/ust-stablecoin-loses-dollar-peg-amid-crypto-market-collapse\">the asset&#8217;s price fell below $0.62<\/a> during the night of May 10.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. Treasury Secretary Janet Yellen urged Congress to pass legislation regulating stablecoins by the end of 2022. At a hearing of the Senate Banking Committee she referenced the incident with the algorithmic stablecoin TerraUSD (UST), which lost its peg to the dollar.<\/p>\n","protected":false},"author":1,"featured_media":61254,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2085,807],"class_list":["post-61253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-janet-yellen","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"30","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61253"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61253\/revisions"}],"predecessor-version":[{"id":61255,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61253\/revisions\/61255"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61254"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}