The New York Times has published an explainer article on the type of cryptocurrency and signaled that the rush to regulate the stablecoins is the most important conversation in the financial circles of Washington for this year. They have been branded as ‘systematically risky’.
The worth of stablecoins is connected with the government currencies and the US dollars. Stablecoins act as the bridge between cryptocurrencies the conventional finances however, the regulation amount could work in two ways
- It could provide ease to investors using crypto
- Helps in the growth of the emerging industry
The regulators are trying to understand how the stablecoins should be handled and it has been documented by media and other platforms too. However, the New York Times has featured that the regulation of the stablecoins is coming. The Times has also mentioned some of the options that the regulators can use such as treating them as money market mutual funds, calling them ‘securities’, regulate them like banks, and more.
Do you think stablecoins are set to change the landscape of cryptocurrency?