If more stablecoins get rekt, it will be a call for stablecoin regulation and a huge priority concern to adapt CBDCs for “your safety”

So we all know that the historic de-pegging of the TerraUSD this week sent shockwaves through the financial world.

And it’s not the first time a stablecoin loses it peg. Neutrino lost its peg back in April, and TITAN/IRON last year.

And today, USDT fell to $0.95, making people nervous.

In a Senate hearing on Tuesday, US Treasury Secretary Janet Yellen referred to UST by name as she once again asked Congress to pass legislation regulating stablecoins.

If more stablecoins get rekt, I’m afraid stablecoins will be questioned more often and it will be an easy & logical step to CBDCs for “your safety”.

My tinfoil-hat-me tells that IF this happens more often.. central banks are fucking with stable coins to push their CBDC agenda and urge governments for regulations. But I have nothing to back this up. Algorithmic stablecoins have flaws in the first place.

Anyway… I hope everyone is doing well and have diversified in different stablecoins. Please be careful. Right now I learned it the hard way. Had some UST sitting on the side to buy the dip, but UST dipped.

View Source

8 thoughts on “If more stablecoins get rekt, it will be a call for stablecoin regulation and a huge priority concern to adapt CBDCs for “your safety””

  1. A proper usd backed stable coin should never loose its peg, usdt was always considered abit shady as it was never 100% backed where as usdc is so almost impossible to loose it

  2. For more in-depth skeptical discussion, we encourage our readers to use this [search listing](https://reddit.com/r/CryptoCurrency/search?q=title%3A%22Monthly+Skeptics%22+author%3ACryptoSkeptics&restrict_sr=on&sort=new&t=all) for help finding the latest Skeptics Discussion thread.

    *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoCurrency) if you have any questions or concerns.*

  3. I definitely want to see more discussion on the pros and cons of pending regulation of stablecoins. And what the theories are for what it will do to the future of Crypto.

  4. What bugs me the most (and has been pointed out by other commenters here) is that all the volatility in the crypto space is being done by the big players, and you better believe hedge funds/wall st firms are a part of that.

    Us retail players are small potatoes by comparison. We can’t move the market like they can. So I view govt agency calls for regulation as highly hypocritical.

    1. Big banks/wall st/hedge funds manipulate the crypto market (because it can be done and is not regulated)
    2. Agency convinces congress to pass regulation. Anyone who’s taken a business class in college knows that regulations (at least in the US) generally works for big companies as a moat to competition.
    3. Innovation is stifled, or greatly reduced – increasing costs to the customer – who is you and me (excluding any whales wander through the threads)
    4. crypto as we know it today will be just another regulated market like the stock market. The big players will control access to it just like they do traditional stock/options/financial markets.
    5. The great irony, and hypocrisy, is that those institutions/groups that are primarily responsible for *causing* the crypto volatility, benefit the most from new regulation, and we as retail/smaller players are forced to pay more for a service/access that we already had. But now, the big banks/institutions are the gatekeepers, and can continue their patterns of payment for order flow, front running due to better access to info, etc.

    This is coming from someone who has worked in financial markets. I’ve not been privy to anything crypto related specifically in any of these large institutions, but I’ve certainly seen this theme of underhanded dealing in TradFi (and supposedly “regulated”) markets. Maybe not technically illegal, but certainly not ethical either.

    And to head off those who may view me as an idealist – I don’t expect any better from these institutions, their primary focus is profit above all else. And that’s fine. But what irks me is that as a participant in the crypto markets, and a believer in the potential of decentralized finance to help “regular folks” do better financially, and take more control over their own finances, I’m being told that my actions and the idea of a freer system is bad – by the very actors who are primarily responsible for that “bad activity”.

    Ok, rant is done. If you made it this far, I appreciate you, and the space to vent. Let’s get back to work on this idea of gaining more control over our own money.


Leave a Comment