US legislators think stablecoin legislation could be approved next week. If the legislation is approved, algorithmic stablecoins will be banned for 2 years.
According to the draft legislation in Bloomberg’s September 20 report, “internally collateralized stablecoins remove or create will be banned. This rule is found in the Terra network. TerraUSD (UST) and luna It will cover cryptocurrencies that support each other, such as
UST, an algorithmic stablecoin, is paired with another cryptocurrency of the network, Luna. mutual trading by making 1:1 to dollars It was designed to be fixed. in May UST collapse With billions of dollars in losses and the collapse of many companies, policy makers began to lean more towards stablecoins.
Chairman of the House Financial Services Committee Maxine Waters and Patrick McHenry working to reach agreement on stablecoin legislation. However, sources are wondering whether McHenry approved the final draft. uncertain said that.
Members of the draft until next week more senior deputies like this high policy stating that it will take a long time for complex designs to be finalized. reach the end of the year He said he saw it as an optimistic possibility.