The United States turns its attention to stablecoin regulation.

[pooya87]

In any case, are you following the news on UST's depegging?

Technically speaking centralized shitcoins whether it is UST or USDT or others are not really pegged to anything. They all function based on faith and a hope that users are going to continue using their shitcoin at the designated price but when that faith goes away or when a massive dump occurs these shitcoins crash hard. The biggest one is still Tether but that too has gotten dumped in the past and there is nothing they can do about it.
These things are only creating headaches in bitcoin world.

[DooMAD]

In any case, are you following the news on UST's depegging? It also appears that this might become a storyline where the regulators can argue for a ban on all stablecoins instead of regulating them hehehe. This will certainly reduce the market size of the cryptospace in America.

It's a market where the trash, sooner or later, takes itself out.  If these so-called stablecoin projects are as weak as they as they appear to be and if people are foolishly "investing" in them as readily as they appear to be, there's definitely room for the market to get a lot smaller.  I'm okay with that, because I understand that it can't function any other way. 

[bbc.reporter]

In any case, are you following the news on UST's depegging?

Technically speaking centralized shitcoins whether it is UST or USDT or others are not really pegged to anything. They all function based on faith and a hope that users are going to continue using their shitcoin at the designated price but when that faith goes away or when a massive dump occurs these shitcoins crash hard. The biggest one is still Tether but that too has gotten dumped in the past and there is nothing they can do about it.
These things are only creating headaches in bitcoin world.

I very much agree. Something similar can also be argued on fiat currencies. Inflation in America is presently 8% according to some articles. This could be implied that the American dollar has depegged 8% hehehe.

Also agreed on tether and the headaches they create in the cryptospace. We have argued about this in my big short thread for months and it appears that some people beginning to see the possbility of tether as a systemic risk.

[Ale88]

¿What do you think of the direction the US is taking with stablecoin regulation?

Of course they want to regulate the stable coins because for sure they don't like that someone else is issuing a digital dollar, and they want to be the only ones to do it. Unfortunately the UST situation will accelerate this process.

[Nrcewker]

We can see that this country shows some interest in helping cryptocurrencies, perhaps to facilitate the operation of these platforms, either for its own benefit or for its citizens.

At last US showed the interest in cryptos.
There were some rumours already in the market about the same.
Now it’s great it’s somehow officially announced.
The US government has now understood the revolutionary asset and it’s importance.
For this reason they are now on a voyage to make the stable-coins part of their eco system.
Let’s hope this movement will help us to come out of the bearish market and at last we will make good profits from it.

[DooMAD]

Of course they want to regulate the stable coins because for sure they don't like that someone else is issuing a digital dollar, and they want to be the only ones to do it. Unfortunately the UST situation will accelerate this process.

Agreed. Actually they might be the one behind this attack because recently SEC do a comment for UST before this depegging happened. It's ironic how the timing of the attack on UST and LUNA coincides to the time when SEC is imposing proper regulation on all the ongoing stable coins right now. It just happened that UST is new and has a lot of vulnerability which is an easy target for attack like this. Poor UST.

I'm not inclined to see it that way.  UST and USDT are categorically not a "digital dollar".  They are IOUs, which unscrupulous companies are thrilled they've managed to dupe so many people into believing are digital dollars when they aren't.  You two serve as a prime example why regulation is sometimes necessary.  You've been manipulated by these companies and you don't even realise it.

[arwin100]

Of course they want to regulate the stable coins because for sure they don't like that someone else is issuing a digital dollar, and they want to be the only ones to do it. Unfortunately the UST situation will accelerate this process.

Agreed. Actually they might be the one behind this attack because recently SEC do a comment for UST before this depegging happened. It's ironic how the timing of the attack on UST and LUNA coincides to the time when SEC is imposing proper regulation on all the ongoing stable coins right now. It just happened that UST is new and has a lot of vulnerability which is an easy target for attack like this. Poor UST.

I'm not inclined to see it that way.  UST and USDT are categorically not a "digital dollar".  They are IOUs, which unscrupulous companies are thrilled they've managed to dupe so many people into believing are digital dollars when they aren't.  You two serve as a prime example why regulation is sometimes necessary.  You've been manipulated by these companies and you don't even realise it.

Many people think it is because it was pegged to dollars so hopefully they know now the risk for having it since for what UST experiencing now they might lose their money for unwanted events. Lets just hope for now that things will go better because its really bad to see them dropping because it creates fear to the whole market also especially that LUNA is creating bad market taste to the investors or holders.