Srishti Shankar, BSW.LLB, Gujarat National Law University
Due to fear in the mind of the US legislators regarding the constant threat of financial breakdown that could be cause by the failure of the Stablecoin arrangement and the impending threats to regulator and user privacy including the affect on policy, easement of capital flight and shift of power to the capitalistic tech companies such as Facebook etc. Stablecoins are thus in the light of the recent circumstances perhaps, the first cryptocurrencies to face US regulations.
This started with the recent controversy with Tether a leading Stablecoin which claimed to be 100% backed by US dollar was able to maintain its backing and the possible financial risk that it posed incase the said findings were true. As of now, there are no standardized provisions for stablecoins to disclose their assets leading the US Securities and Exchange Commissioner Gary Gensler to ask for more regulations on stablecoins.
