US Seeks 2-Year UST Ban for Stablecoins

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new bill proposed by the U.S. Congress would ban “endogenously collateralized” stablecoins like TerraUSD (UST) for the next two years.

After Terra's multi-billion-dollar collapse in May, many governments have tightened their regulation of the industry.

The bill has been revised to include algorithmic stablecoins. The newest version of the bill states that it would be illegal to create and distribute “endogenously collateralized stablecoins.”

These days, stablecoin issuers are more closely regulated and cannot get away with artificially inflating prices of some tokens. In addition to banning algorithmic stablecoins, the draft bill will put stricter controls on other types of stablecoin issuers.

Jonathan

An editor at Coincrop

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Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.