Stablecoins' recent de-pegging is not a 'real threat to financial stability,' says Janet Yellen

Stablecoins' recent de-pegging is not a 'real threat to financial stability,' says Janet Yellen


According to United States Treasury Secretary Janet Yellen, the stablecoin market is not at the scale at which the drop in the price of TerraUSD (UST) and Tether (USDT) below $1 would present a threat to the country’s financial stability.

In a Thursday hearing of the House Financial Services Committee on the Financial Stability Oversight Council’s Annual Report to Congress, Yellen hinted that the stablecoin market was not yet at a size in which UST dropping to under $0.40 and USDT — the largest stablecoin by market capitalization — briefly de-pegging from the dollar to hit $0.96 would create a “real threat to financial stability.” The Treasury Secretary cited a November report from the President’s Working Group on Financial Markets and said the council was currently

Continue reading

You Might Like

 

Join the conversation!

Please share your thoughts about this article below. We value your opinions, and would love to see you add to the discussion!

Thanks for sharing!
Send this to a friend