Stablecoins get more regulated

[figmentofmyass]

DAI Shouldn't have allowed centralized stable coins as collateral in the first place. It should have only been backed by ethereum.

i agree in theory, but in reality that's what caused millions of dollars in losses for defi contract holders during the march crash. https://insights.glassnode.com/what-really-happened-to-makerdao/

and in the aftermath of all that, there was an ongoing inability to re-peg DAI to USD too. that's what spawned the move towards centralized assets.

the truth is that decentralized stablecoins probably just aren't ready for prime time yet. DAI occupies some middle ground where it's partially decentralized.

[ven7net]

Stablecoin issuers start looking more like regular banks as now US lawmakers require to obtain bank charters. Basically all of them will be under control of the state.
Do you think it a positive move?

https://www.coindesk.com/us-lawmakers-introduce-bill-that-would-require-stablecoin-issuers-to-obtain-bank-charters

I would say that this is both good and bad at the same time. From the point of view of you and me, this is bad, since the system will control stablecoins in order to at least make money on it and regulate it in our interests. What's good about this is the possibility of faster adoption of cryptocurrencies and stablecoins in the world, but on a third party basis. In this situation, it is difficult to say which side to be better on, but you always need to proceed from your benefits, if they are not for you, then this or that option is not suitable for you. In any case, stablecoins and cryptocurrencies await regulation in the future and this is unlikely to be avoided.

[Argoo]

I wonder about how they plan to regulate foreign stablecoins, such as USDT, and how they plan to control how U.S. customers use them.

I guess they have some leverage because they can control access to USD, but I am curious about how that might work.

Each state has the right to require certain rules of conduct in relation to their national currencies, which are collateral for their non-stable coins.  They can also and have the right to regulate the circulation of all types of money that are used as a means of payment in their territory.  Therefore, for example, the US can ban all stablecoins that are backed by its dollar.  Over time, government regulation of stablecoins will become tighter and governments will have appropriate leverage if they act together.

[eaLiTy]

Therefore, for example, the US can ban all stablecoins that are backed by its dollar.  Over time, government regulation of stablecoins will become tighter and governments will have appropriate leverage if they act together.

I am expecting regulation and strict scrutiny for stable coins and with Facebook planning to come out with their version of coin the regulatory authorities were against the idea and since they are a social media giant which is listed in stock exchanges they cannot jump into the cryptocurrency space like the rest of the coins that exist in the market.

I am not expecting the government to ban stable coins even though i am expecting a complete ban for privacy based coins in the coming years as some of the governments are already trying to break the privacy and if they did not succeed they will ban them.