Although it has been two weeks since the shock caused by TerraUSD (UST depegging), the long waves of this event continue to come in. According to the Congressional Research Service, the UST crash was a “run-like” situation and that crypto has not achieved the same level “adequate regulation” as traditional finance markets.
Michael Barr, a former Ripple Labs advisory board member and the pick of President Joe Biden for vice-chair for supervision at The Federal Reserve, strongly agrees with this. During the confirmation hearing, he spoke out about “some serious risks” that innovative technologies, and especially cryptocurrencies, pose.
Stablecoins are not just a concern in the United States. Sarah Pritchard (executive director markets, United Kingdom’s Financial Conduct Authority) assured journalists that the FCA would “absolutely” consider the depegging incident. This is not surprising considering the intent of the British Treasury of making stablecoins a method of payment.
Recent turmoil made it even more nervous for the Group of Seven, prompting the Financial Stability Board (FSB) to accelerate crypto-asset regulation. Canada, France and Germany had to convene a special meeting in Koenigswinter which is home to 40,000 people. The Conservative Party of South Korea requested a hearing before the United States.
17 questions about crypto
How can the U.S. increase its economic competitiveness with digital assets? The United States Department of Commerce believes there are 17 additional questions that could help us answer this question. In a request for comments through the International Trade Administration, the department will publish 17 questions. The department hopes that the public’s response will assist in developing a comprehensive regulatory framework.
The fight for 401(k), continues
Another recap of a heated debate that took place several months ago, Florida congressman Byron Donalds introduced Financial Freedom Act to the United States House of Representatives. The bill’s main purpose is to stop the U.S. Department of Labor restricting the types of investments that are allowed in self-directed 401k retirement plans. This would prohibit retirees from including cryptocurrency in their 401k plan.
Chainabuse was launched
TRM Labs, Circle, TRM Labs, and four other large crypto companies have launched Chainabuse, a community-driven tool for reporting scams. This platform will allow users to actively report fraud cases and access a free database of illicit activities. Users can then investigate potential investment projects and use the database to help them.