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From Tether To Terra: The Current Stablecoin Ecosystem And The Failure Of Regulators, Mary E. Burke
From Tether To Terra: The Current Stablecoin Ecosystem And The Failure Of Regulators, Mary E. Burke
Fordham Journal of Corporate & Financial Law
The Tether controversy and Terra crash have placed stablecoins in the regulatory spotlight. Stablecoins are often portrayed as posing systemic risks to financial markets, with some pundits labelling them “the villain of the finance world.” Global regulatory bodies, namely the International Monetary Fund (IMF) and the Bank of International Settlement (BIS), and political leaders, including the Biden Administration, have all called for stablecoin regulation. These officials allege that stablecoins’ structure, combined with their exponential growth, pose a unique risk to global markets. Before the May 2022 Terra crash, government reports superficially treated stablecoins by exclusively focusing on asset-backed coins. Post …