Gensler attacks USDT, USDC and BUSD while Do Kwon is ‘razor-focused to deliver’.

US SEC Chairman Gary Gensler criticized customer-facing stablecoins and digital asset exchanges. This criticism is at a low point for the crypto market, which is currently undergoing a rough patch. It was Terra labs that led the decline, which took a huge hit, with stablecoins dropping 90%.

SEC aiming for the last laugh

Gary Gensler launched a fierce attack on digital asset exchanges and stablecoins. report by Bloomberg. he said,

“Crypto faces many challenges, such as a platform that transacts before customers. In fact, they often do business with customers because they do market marking on them.”

He also pointed out how the major stablecoins Tether, USD Coin and Binance USD are partnering with exchanges. The SEC Chairman said:

“I don’t think it’s a coincidence. Each of the three large platforms was established by a trading platform to facilitate trading on that platform and potentially avoid AML (Anti-Money Laundering) and KYC (Know Your Customer).”

Concerns over stablecoins have risen recently after the UST lost its peg to the dollar. This is being pointed out as a catastrophe that could potentially lead to a BTC crash. Senator Mark Warner has urged investors to “need some kind of framework” to ensure the stability of stablecoins. He said this in an interview.

“Honestly, this turmoil in the market could take a bit of air from these very overheated balloons.”

Terra Labs CEO Announces Rescue Work

Polygon’s chief information security officer, Mudit Gupta, likened the crash to one of the biggest financial crashes in recent years. that said,

“It is very similar to the Lehman Brothers crisis that caused the 2008 financial crisis. It didn’t matter if the other company was good or bad. Everything sank.”

Nevertheless, Kwon Do, CEO of Terra Labs, released Recovery plan on his Twitter feed. Finally breaking the silence over this devastating defeat, Kwondo suggested adjusting two parameters in Terra’s codebase. Some of these metrics, namely BasePool and PoolRecoveryBlock, are Proposal 1164 It will allow possible recovery of stablecoins.

In addition, Do Kwon has urged to accelerate token burn by increasing the protocol’s issuance capacity from $293 million to $1.2 billion. He added.

“The only way forward is to absorb the stablecoin supply we want to shut down before $UST starts to deplete. There is no way around it.”

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