Stablecoin regulation could spell the beginning of the end for DeFi
One of the key areas of centralization is found with the various stablecoins that make up a large portion of the DeFi economy.
Follow stablecoin news, issuer updates, market share changes, regulation, reserve transparency, and payment adoption trends.
Tether's (USDT) market share stood at 90% in 2020 but has since called to roughly 50% as other stablecoins gained ground in the industry.
Acting FDIC Chairman Martin Gruenberg said that stablecoins could disrupt the banking system if properly regulated and integrated into the mainstream economy.
In July, the cryptocurrency market cap reached a low of $903 billion, but it recovered significantly in Q3 and reached $1.2 trillion in August.
Tether said it has cut its commercial paper to zero, and will invest more in U.S. Treasury Bills and short-term government-issued debt.
The proposal has led to increased interest in USTC and other Terra classic ecosystem tokens.
As of Sept. 30, Tether holds 58.1% of its reserve assets in U.S. Treasury bills, while aggressively reducing its commercial paper exposure to below $50 million.