Tech News, Magazine & Review WordPress Theme 2017
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX
No Result
View All Result
The Daily Hodl
No Result
View All Result

Top US Banking Regulator Says Tether (USDT) May Have Similar Vulnerability to TerraUSD (UST) Without Regulation

by Daily Hodl Staff
May 30, 2022
in Regulators

The head of a key US banking regulatory agency says Tether (USDT), a stablecoin designed to be pegged to the US dollar, may not be a safe place for crypto investors to park their capital.

Earlier this month, Terra (LUNA), now named Terra Classic, fell to essentially zero as Terra’s UST stablecoin lost its peg to the dollar, wiping out roughly $60 billion in wealth.

At the same time, USDT also briefly lost its peg by a small amount amid heavy sell pressure before recovering.

In an interview with CNBC, the head of the Office of the Comptroller of the Currency (OCC), Michael Hsu, says the collapse of Terra (LUNA) and its algorithmic stablecoin UST exposed “deep vulnerabilities” in the crypto ecosystem.

“I think what’s really interesting, TerraUSD was an algorithmic stablecoin… Tether is not. It’s not an algo stablecoin. It’s backed by assets. And yet, we still had some contagion from one to the other. Why?

I think for those like me, bank regulators, or historians of money-like instruments, this is a really familiar story. And the way to deal with it is prudential regulation. This is why I think some of the options, the proposals for more of a bank [or] regulatory type of approach is a good starting point for that conversation.”

According to Hsu, the fact that Tether was also briefly affected in the same timeframe as UST’s collapse is something investors must not take lightly.

“Clearly, you saw contagion, not just from Terra to the broader crypto ecosystem, but to Tether, to other stablecoins, and I think that’s something that wasn’t assumed. And I think that’s something people have to really pay attention to.”

Senator Cory Booker (D-NJ) says that while regulation is needed to make the industry more transparent, the regulatory environment shouldn’t force innovative companies in the space out of the country.

“What we don’t want to do is choke a new industry and innovation out so that we lose out on opportunities. Or what I’m seeing right now, a lot of these opportunities just move offshore, and we’re missing the economic growth and job creation that’s a part of it. So this is a really important space if we get the regulation right, that can actually be helpful to the industry and protecting consumers.”

Check Price Action

Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

 
Check Latest News Headlines


 
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/FullRix/Andy Chipus

Submit a Press Release

Industry Announcements

  • Spritz Finance Launches Direct Wallet Pay, an Easy Way To Pay Real-World Bills With USDC From Any Crypto Wallet
    July 5, 2022
  • Metaverse Summit To Accelerate Open Metaverse and Web 3.0 With International Leaders
    July 5, 2022
  • Swappi (PPI) Announces First Exchange Listing on BitMart
    July 1, 2022
  • Yield App Joins Forces With Unstoppable Domains To Simplify Web 3.0 Journey
    July 1, 2022
  • ARK Has Introduced a New Blockchain Consensus Technology
    June 30, 2022
  • Cantina Royale Taps Elrond Apes To Boost Its In-Game Cross Chain NFT Collections
    June 28, 2022
  • Saddle Finance Announces End of Lock-Up Period for Its SDL Token
    June 24, 2022
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$20,176.00
$20,176.00
0.9%
Ethereum
$1,137.77
$1,137.77
1.1%
Cardano
$0.455284
$0.455284
2.19%
XRP
$0.325658
$0.325658
0.87%
Dogecoin
$0.06712
$0.06712
3.56%

Spotlight

  • Millions of Dollars Worth of Ethereum (ETH) Sent by Hacker to Coin Mixer Following Harmony (ONE) Attack: Report
    June 30, 2022
  • Veteran Trader Tone Vays Warns of Another Bitcoin Collapse After ‘Disastrous’ Week – Here’s His Downside Target
    July 4, 2022
  • Coin Bureau Reveals Current Crypto Portfolio and Top Three Ethereum Killers
    June 28, 2022
  • Coinbase Abruptly Adds Support for 70 New Altcoins to Global Custody Service
    July 1, 2022
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology

Categories

Bitcoin • Ethereum • Trading •
Ripple and XRP • Altcoins •
Blockchain • Regulators •
Scams • Crypto101 • HodlX •
Futuremash •
Industry Announcements

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT

JOIN US ON TELEGRAM

JOIN US ON TWITTER

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2022 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Ripple and XRP
    • Altcoins
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams
    • Crypto 101
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Your Guest Blog
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • ChainWire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Binance Coin (BNB)
  • BEGINNERS
    • What Is Bitcoin?
    • What Is Blockchain?
    • What Does Hodl Mean?
    • How to Pay Your Bills with Bitcoin
    • Best Bitcoin FAQs
    • Example of Bitcoin’s Purpose
    • Cryptocurrency Has Multiple Meanings
    • Authenticator Alert – Securing Your Crypto
  • SUBMIT
    • Guest Blog
    • Press release
    • Sponsored post
  • EMAIL ALERTS
  • DAILY HODL MIX

© 2022 The Daily Hodl