belonging to the Terra ecosystem TerraUSDThe collapse of .
While the assessment of the loss suffered during the market crash last week continues, G7 member countries called for necessary adjustments before the next meeting in June.
Reuters reported that a draft letter by countries’ finance ministers and central banker employees asked the Switzerland-based Financial Stability Board (FSB) to develop “coherent and comprehensive regulation” before the next G7 meeting in Germany.
G7 member countries consists of the seven largest developed industrial countries and consists of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as well as the European Union.
The letter was shared in the wake of the most recent crash in the crypto market, which was triggered in part by the loss of the TerraUSD (UST) algorithmic stablecoin on May 8.
As UST lost $1 of its value, Luna Foundation Guard, a group dedicated to supporting the Terra ecosystem, lent another $750 million in Bitcoin and $750 million in UST to restore TerraUSD pegged to US dollars. sell bitcoin, Bitcoin (BTC) It put more downward pressure on the cryptocurrency and likely exacerbated the ongoing crypto crash.
According to CoinMarketCap, since May 8, the crypto market has lost $302.1 billion in value.
It can be seen that the collapse of the Terra ecosystem is clearly in the minds of the regulatory agencies in the world, especially in the USA. Speaking during a congressional hearing last week, US Treasury Secretary Janet Yellen cited the collapse of Terra as an example of how stablecoins “can pose a risk to the financial system,” but later clarified that the system is currently not at risk.
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